IIFL Finance NCD - All you need to know

IIFL NCD
by Mrinmai Shinde 04/03/2021

IIFL Finance Ltd has launched IIFL Bonds, a Non-Convertible Debenture (NCD) issue of up to ₹1,000 crore, offering an effective yield of up to 10.03%. This latest issue of unsecured NCDs has a base size of ₹100 crore with a 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. 

This issue has a long-term credit rating of AA/Negative by Crisil, AA+/Negative by Brickwork.

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.. 

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. 

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 National Stock
Exchange 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.

Why IIFL Bonds 2021?

1. IIFL Bonds offer annualized returns of 10% p.a., which means you can double your money in 87 months.

2. Offers monthly, yearly and cumulative income options

3. Rated AA by CRISIL, which indicates high degree of safety regarding timely servicing of financial obligations

4. No TDS on interest income

5. These bonds will be listed on NSE & BSE


How to Invest in IIFL NCD?

1. Visit invest.5paisa.com/ncd

2. Enter your UPI Id.

3. 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)

4. Submit your application

5. You should receive an UPI mandate on your UPI app within approx. 2 hours, please authorize it.

Cilck here for more details

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