But the IIFL NCD September IPO 2021 is wholesome!
You might want to sit down for this one. Too good if you already are. The eternal adage of eating healthy food and getting enough sleep just got added with another point: Don’t miss the wholesome investment opportunities. IIFL Finance Limited is all set to open the gates for investors for IPO bidding on the 27th of September this year.
The social unit, which is among the top seven finance conglomerates in India, will offer a breezy online IPO process. If that wasn’t enough, the IPO has been rated AA by the Crisil (independent credit rating agency) and with up to 8.75% percent annual interest and tenure of up to 60 months. All you need to do is feed in your basic details, Bank account, and Demat details, the number of shares you need, and place your bid.
About the Company (company stats, standings, etc.)
| Issuer | IIFL Finance Ltd |
|---|---|
| Type of instrument | Secured Redeemable Non-Convertible Debentures |
| Listing | Bombay Stock Exchange Limited and National Stock Exchange of India Limited |
| Issue Size | Base Issue of Rs. 100 Crore with an option to retain oversubscription up to Rs. 900 Crore aggregating to Rs. 1000 Crore |
| Credit Rating | “CRISIL AA/Stable” by CRISIL and BWR AA+/ Negative by Brickworks |
| Face Value | Rs. 1000 per NCD |
| Minimum Investment | Rs. 10,000 |
| Issue Opening Date | September 27, 2021 |
| Issue Closing Date | October 18, 2021 (*with an option of early closure) |
| Mode of Application | UPI and ABSA |
| Mode of Issuance | Dematerialized only |
| Allotment and allotment ratio | First come, first serve basis only QIB 10%, Corporate 10%, HNI 40%, and Retail 40% of the overall Issue Size |
About the Company
IIFL Finance Limited is one of the leading players in the financial services space in India. It mainly provides a diverse range of loans and mortgages.
These include home loans, gold loans, business loans including loans against property and medium & small enterprise financing, microfinance, developer & construction finance, and capital market finance; catering to both retail and corporate clients.
Subsidiaries
- IIFL Home Finance Limited Provides affordable home loans, small ticket-sized home loans, secured MSME Loans, and project loans.
- Samasta Microfinance Limited Provides microfinance services to women enrolled as members and organized as a Joint Liability Company (‘JLG’).
The company has a nationwide presence with a thriving network of 2,563 branches across 500+ cities.
Financial Performance
Key Strengths
- Diversified retail lending portfolio with an extensive branch network IIFL Finance group, has consolidated assets under management (AUM) of Rs 42,264 crore as of December 31, 2020 (Rs 37,951 crore as on March 31, 2020; Rs 34,904 crore as on March 31, 2019), is primarily engaged in secured lending across various retail asset classes. IIFL Finance has two lending subsidiaries, IIFL Home and Samasta, which carry out the mortgage finance and microfinance businesses, respectively.
Retail loans accounted for almost 90% of the AUM as of December 31, 2020, with a high level of granularity (loans of less than Rs 1 crore). Also, more than 40% of the portfolio qualifies under priority sector lending. The group had identified four key segments – home loans, business loans (including loan against property {LAP} and lending to micro small and medium enterprises—MSME), gold loans, and microfinance, as key growth drivers over the medium term.
- Adequate capitalization the IIFL Finance group is adequately capitalized, with a consolidated net worth of around Rs 5,233 crore as of December 31, 2020 (Rs 4,766 crore as of March 31, 2020). Networth coverage for net non-performing assets (NPAs) was comfortable at around 22 times as of December 31, 2020 (17 times as of March 31, 2020). The group has demonstrated its ability to raise capital from long-term marquee investors such as Fairfax and the CDC group (Rs 1000 crore raised from CDC in fiscal 2017). Also, the company has recently raised subordinated bonds to boost capitalization levels. Given the growth plans, capitalization should remain adequate for the current scale of operations. However, the ability to raise capital and manage leverage levels over the medium term will be an important factor.
Credit Risks
- Limited seasoning of some of the asset classes like home loans and MSME loansIIFL Finance group’s loan portfolio has grown at a CAGR of about 25% (last three years). Given the scale-up of the loan book in recent years and entry into newer segments, the portfolio remains unseasoned and hence, overall asset quality is yet to be tested through cycles. While certain products have a shorter tenure, and hence, have seen a complete cycle, home loans and MSME lending have limited seasoning so far. Home loans are long tenure products and MSME lending is a recent addition to the product suite. Reported gross NPAs and net NPAs stood at 1.61% and 0.77%, respectively, as of December 31, 2020 (2.31% and 0.97%, respectively, as of March 31, 2020). Also, while increasing focus on small-ticket retail loans will benefit the inherent asset quality over the medium term, the ability to underwrite and maintain strong credit practices across asset classes, amid stiff competition from established players, remains to be seen.
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Bonds India ditches the traditional ways of investing by offering a blockchain-based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose Bonds India for its sleek interface, fail-safe communication, and a step-by-step guide to ensure a well-placed bid. You can apply for India Infoline IPO on BondsIndia’s website.
Place your bid in three simple steps
| Key in Basic Details> | Choose the IPO Series> | Place the bid |
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The application process on the Bonds India platform is simple and seamless?
The application process on the Bonds India platform is simple and seamless.
- Click on the details of IIFL Finance Limited Ncd IPO
- Fill in the Application form with the basic details such as name, email address, mobile number, Pan details, bank, and Demat details.
- Then, confirm the quantity and price and select a payment method.
- That’s all folks, bidding is complete!