IIFL Finance NCD - All you need to know

IIFL Finance NCD - All you need to know

IIFL Finance Ltd has launched a Non-Convertible Debenture (NCD) issue of up to ₹1,000 crore, offering an effective yield of up to 10.03%. The latest issue of unsecured NCDs has a base size of ₹100 crore with a greenshoe option to retain oversubscription of up to ₹900 crore. The funds raised through the issue would be used for onward lending, financing, and for repayment or prepayment of interest and principal of existing borrowings of the company apart from general corporate purposes. 

IIFL Group's non-banking finance arm, IIFL Finance Limited, is a systemically important Non-Banking Financial Company not accepting public deposits and engaged in the business of home and property loans, gold loans, loan against securities, SME business and micro-finance loans. IIFL Finance has a long-term credit rating of AA/Negative by Crisil, AA+/Negative by Brickwork. 

The promoters of the company are Mr. Nirmal Jain and Mr. Venkataraman Rajamani. As at 31st December 2020, the company’s consolidated assets under management was Rs 4,22,641.05 million. 

IIFL Bonds Issue Highlights:

Issue Opens on
3rd March, 2021
Issue Closes on
23rd March, 2021
Registrar
Link Intime India Pvt Limited
Allotment
First Come First Served Basis
Listing On
BSE Limited and NSE of India Limited
Issue Price
₹ 1,000 per NCD
Face Value
₹ 1,000 per NCD
Minimum Application
₹ 10,000/- only
Issue Size
₹ 10,000 million (₹ 1000 cr)
Nature
Subordinated Redeemable Bonds
Credit Ratings
CRISIL AA/Negative and Brickwork AA+/Negative
Tenor
87 Months
Payment Frequency
Monthly, Annually, At Maturity

What is NCD? 

NCD, also known as Non-convertible debentures, is a fixed income product that offers far better returns when compared with Fixed Deposits or convertible debentures. They are usually issued by high-rated companies in the form of a public issue to accumulate long-term capital appreciation. Investing in NCDs helps you earn better returns, offers the liquidity, is a low-risk instrument and offers tax benefits when compared to convertible debentures.

HOW TO INVEST IN IIFL NCD?

  • Visit invest.5paisa.com/ncd
  • Enter your UPI Id.
  • Enter the quantity of NCDs you wish to apply for. Total application amount should be between Rs.10,000 (10 NCDs) and Rs.2,00,000 (200 NCDs)
  • Submit your application
  • You should receive an UPI mandate on your UPI app within approx. 2 hours, please authorize it.