But the IPO 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 Home Finance Ltd is all set to open the gates for investors for IPO bidding on the 6th of July this year.
The social unit, which is among the top seven finance conglomerates of India, will offer a breezy online IPO process through its trading website, based on the UPI payment gateway. If that wasn’t enough, the IPO has been rated AA+ by the BWR (independent credit rating agency) and comes with a 10% per cent annual interest and tenure of 87 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 Issue
| Issuer | IIFL Home Finance Ltd |
|---|---|
| Type of instrument | Unsecured Subordinated Redeemable NCD |
| 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 |
| Issue Price | Rs. 1000 per NCD |
| Face Value | Rs. 1000 per NCD |
| Minimum Investment | Rs. 10,000 |
| Issue Closing Date | July 28, 2021 (*with an option of early closure) |
| Issue Opening Date | July 06, 2021 |
| Issue Closing Date | July 28, 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 Home Finance Limited, a company incorporated under the Companies Act, 1956 (CIN: U65993MH2006PLC166475) and registered as a Housing Finance Company with the National Housing Bank vide Certificate of Registration (COR) No. 09.0175.18 dated September 25, 2018
- The Company is a subsidiary of IIFL Finance Limited which is an NBFC registered with the Reserve Bank of India (RBI)
- Widespread Network: 125+ Branches Across India, 2000+ Employees
- Products: Affordable Home Loan. Non-Metro Housing Loan, Home Purchase, Home Renovation, Home Construction, and Plot Purchase
IIFL Home Loans’ Financial Performance
Key Strengths
- Diversified Business ProfileA retail-focused NBFC with diversified products such as home loans, gold loans, microfinance loans (MFI), MSME business loans, LAP, and construction finance.
- Diversified Resource MixIIFL Finance has a diversified resource profile and has demonstrated its ability to raise funds through various sources. One of the key sources to raise funds are from assignment and securitization constituting around 40% of the funding requirement.
- Experienced Management and Strong ownershipIIFL Finance Group is led by a qualified and experienced management team who possess strong experience in the financial services domain. The board of Directors is Mr Nirmal Jain (the founder of IIFL Group and chairman of IIFL Finance Limited), Mr R. Venkataraman (co-promoter and managing director of IIFL Finance Limited), and other independent directors. The parent company, IIFL Finance, is a listed company with strong shareholder background.
Credit Risks
- Impact on asset quality due to Covid-19Asset Credit Quality has been under pressure due to the global pandemic in FY20 and FY21. There has been an increase in gross NPA from 1.96% on March 19 to 2.31% on March 20. The loan moratorium had also temporarily bought about a dip in collections
- Limited loan seasoningIIFLs AUM has shown a steady growth from Rs 22281 cr on March 17 to Rs 42264 cr on Dec 20. However, the product mix is highly skewed towards Home Loan and Loan Against Property (LAP), exhibiting limited seasoning, which constitutes around 45% of the total AUM.
Why choose Bonds India?
Bonds India is an online platform for fixed-income securities such as IPOs, bonds, 54EC bonds, and fixed deposits. With a cumulative pedigree of 50+ years in the bond market, we aim to democratize the market for common investors by stationing detailed insights, and expert advice, and keeping a close watch on the market sentiment. Bonds India brings up-to-date information when IPOs go live, fixed deposits with higher interests, and bonds with a competitive price before anyone else.7
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 step-by-step guide to ensure a well-placed bid. You can apply for an India Infoline IPO on the BondsIndia website.
Place your bid in three simple steps
| Key in Basic Details> | Choose the IPO Series> | Place the bid |
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How to invest in the IPO
The application process on the Bonds India platform is simple and seamless.
- Click on the details of the company on the home page
- 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!