29 Aug 2012: India Infoline Finance Limited
(“Company” or “Issuer”), an NBFC subsidiary of India Infoline Limited, will
open a Public Issue of Un-Secured Redeemable Non-Convertible Debentures of face
value of Rs 1,000 each (“NCDs”) aggregating up to Rs 2,500 million (“Base Issue
Size”), with an option to retain oversubscription up to Rs 2,500 million,
aggregating to a total of Rs 5,000 million (the “Over all Issue Size”), on
September 5, 2012. The NCDs will be in the nature of subordinated debt and will
be eligible for Tier-II capital. The NCD Issue has 3 investment options and the
yield on redemption is 13.52%, 12.75% and 12.75% (per annum) for Option I, II,
III respectively. The issue closes on September 18, 2012.
Mr
Nirmal Jain, Founder – Chairman India Infoline Group, said “In the last 6 years
we have build a robust lending business. We have been successful in maintaining
low net NPA of 0.4% through our robust credit appraisal processes and internal
controls. I think these bonds present a win-win proposition for investor and
company both, as on one hand they offer attractive interest yield, on the other
hand, they will help the company to boost its capital adequacy.”
The
NCDs will be listed on National Stock Exchange of India Limited (“NSE”) and BSE
Limited (“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 (5 NCDs).
The
NCDs proposed under this Issue have been rated ‘[ICRA]AA- (stable)’ by ICRA,
and ‘CRISIL AA-/Stable' by CRISIL. The above ratings indicate high degree of
safety for timely servicing of financial obligations and these instruments
carry very low credit risk.
There
are three investment options:
Option
I (Monthly interest payment):
The redemption date is 72 months from the deemed date of allotment and the
coupon rate is 12.75% p.a. The interest payment frequency is monthly and the
face value plus any interest that may have accrued is payable on redemption.
The effective yield on this option is 13.52% per annum.
Option
II (Annual interest payment):
The redemption date is 72 months from the deemed date of allotment and the
coupon rate is 12.75% p.a. The interest payment frequency is annual and the
face value plus any interest that may have accrued is payable on redemption.
The effective yield on this option is 12.75% per annum.
Option
III (Redemption premium):
NCDs will be redeemed at Rs 2,054.50 at the end of 72 months from the deemed
date of allotment. The effective yield on this option is 12.75% per annum.
The lead managers to
the proposed public issue of NCDs are Axis Bank Limited, SBI Capital Markets
Limited, Edelweiss Financial Services Limited, Trust Investment Advisors
Private Limited and India Infoline Limited (only for marketing of the Issue), while
the Co-lead managers to the Issue are RR Investors Capital Services (P) Limited
and Karvy Investor Services Limited.
The Prospectus is
available on the website of the Company at www.iiflfinance.com;
and websites of NSE and BSE at www.nseindia.com;
www.bseindia.com respectively and on the
respective websites of the Lead Managers at www.axisbank.com,
www.sbicaps.com, www.edelweissfin.com, www.trustgroup.co.in, www.iiflcap.com, and Co-Lead Managers at www.rrfinance.com/rrfcl.com and www.karvy.com.
About India
Infoline Finance Limited
India Infoline Finance Limited, a
subsidiary of India Infoline Limited, is registered with Reserve Bank of India
as a non-banking finance company. It offers a broad suite of lending and other
financial products to both retail and corporate clients. The Company’s products
include Mortgage loans (which includes Housing Loans and Loans against
Property), Capital Market financing (including Loans against Securities,
Promoter Funding, Margin Funding, IPO financing and other structured lending
transactions), Gold loans(which includes
finance against security of mainly used gold ornaments) and Healthcare
financing (which includes finance for medical equipments and project funding in
the healthcare sector).
The
consolidated loan book has witnessed a CAGR of 63.82% over the last four years
and stands at Rs 67.46 bn as on March 31, 2012. Mortgage
Loans accounted for
44.70% of the consolidated Loan Book, Capital Market Finance accounted for
11.86% of the consolidated Loan Book and Gold Loans accounted for 41.07% of the
consolidated Loan Book. Health Care Finance is a recent product which has been
introduced in FY 2011. Net NPA as on March 31, 2012 was 0.40% on a consolidated
basis.
As
on March 31, 2012 the Company’s capital adequacy ratio, on a standalone
basis, stood at 17.86%, as compared to a minimum capital adequacy requirement
of 15% stipulated by RBI for FY11.
Over
the past several years, the Company has expanded its presence. As of 31 March,
2012 it has a total of 1,323 branches and employee strength of 6,094.
India
Infoline Finance Limited’s promoter, India Infoline Limited, is a financial
services organization having presence across India. The global footprint
extends across geographies with offices in New York, London, Geneva, Hong Kong,
Singapore, Dubai, Mauritius and Colombo. It is listed on BSE and NSE. IIFL
Group’s services and products include retail broking, institutional equities,
commodities and currency broking, wealth advisory, credit & finance,
insurance broking, asset management, financial products distribution &
investment banking. The product/ services portfolio of IIFL caters to the
diverse investment and strategic requirements of retail, institutional,
corporate and affluent clients.
Disclaimer: India Infoline Finance Limited
(“Issuer” or “the Company”) , has proposed to offer public issue of Un-Secured
Redeemable Non-Convertible Debentures through Draft Prospectus filed with NSE,
BSE and Securities and Exchange Board of India (for record purposes). The
Prospectus is available on the website of the stock exchanges at www.nseindia.com and www.bseindia.com and the respective websites
of the Lead Managers at www.axisbank.com,
www.sbicaps.com, www.edelweissfin.com, www.trustgroup.co.in, www.iiflcap.com, and Co-Lead Managers at www.rrfinance.com/rrfcl.com and www.karvy.com. Investors proposing to
participate in the Issue should invest only on the basis of information
contained in the Prospectus and special attention is drawn to the risk factors
contained therein.
“It
is to be distinctly understood that the permission given by BSE Limited should
not in any way be deemed or construed that the Prospectus has been cleared or
approved by BSE Limited nor does it certify the correctness or completeness of
any of the contents of the Prospectus. The investors are advised to refer to
the Prospectus for the full text of the Disclaimer clause of the BSE Limited.”
“It
is to be distinctly understood that the permission given by NSE should not in
any way be deemed or construed that the Offer Document has been cleared or
approved by NSE nor does it certify the correctness or completeness of any of
the contents of the Offer Document. The investors are advised to refer to the
Offer Document for the full text of the ‘Disclaimer clause of the NSE”.
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