Friday, August 5, 2011

India Infoline Investment Services NCD

India Infoline Investment Services Limited, a subsidiary of India Infoline Limited (IIFL) has come out with a public issue of Secured Redeemable NCDs of the face-value of Rs. 1,000 each aggregating to Rs. 375 crore, with an option to retain over-subscription up to Rs. 375 crore, aggregating up to a total of Rs. 750 crore. The offer is on a first cum first serve basis.

IIFL has currently more then 3000 business units in over 500 cities pan India. It currently lends money under different segments like loan against gold, loans against shares, home loans, healthcare finance and promoters funding.

The NCD issue opens on August 4, 2011 and closes on August 12, 2011.

The NCDs will be listed on NSE and BSE and will have a tradable lot size of 1 NCD. The face value of NCD is Rs. 1,000 and minimum application is Rs. 5,000.

There are three investment options:
Option I (Annual interest payment): The redemption date or maturity period is 36 months from the deemed date of allotment and the coupon rate is 11.7% p.a. The interest payment is annual and the face value plus any interest that may have accrued is payable on redemption.

Option II: NCDs will be redeemed at Rs. 1446.18 at the end of 40 months from the deemed date of allotment with an effective yield of 11.7% per annum.

Option III (Annual interest payment): The redemption date or maturity period is 60 months from the deemed date of allotment and the coupon rate is 11.9% p.a. for Category III investors and 11.7% p.a. for others. The interest payment is annual and the face value plus any interest that may have accrued is payable on redemption.

Its total loan books stands at Rs 3,290 crore. Net performing assets stood at Rs 0.36% in FY11 as against 0.46% in FY10 While gross non-performing assets stood at 0.44% in FY11 compared with 0.60% in FY10. Almost the entire loan book is co-lateralised. Loan to value ratio (LTV) is on an average around 50%.

The funds raised through this Issue will be used by the Company for various financing activities. The Lead Managers to the Issue are Axis Bank Limited, JM Financial Consultants Private Limited and A.K. Capital Services Limited.

Click here to see the recommendation for IIFL NCD!

Click here to check IIFL NCD Allotment Status!