The Business Bytes
TBB BUREAU
BHUBANESWAR, DEC 01, 2023
IIFL Samasta Finance on Friday said it plans to raise up to Rs 1,000 crore through its maiden public issue of non convertible debentures (NCDs), for the purpose of business growth and capital augmentation.
The non-banking microfinance companies (NBFC-MFI) will issue bonds, aggregating to Rs 200 crore, with a green shoe option to retain over-subscription of up to Rs 800 crore (aggregating to a total of Rs 1,000 crore).
The bonds, which opens for subscription on December 4 and closes on December 15, proposes to offer highest coupon rate of 10.50 per cent per annum for tenor of 60 months.
The NCD is available in tenors of 24 months, 36 months and 60 months. The frequency of interest payment is available on monthly and annual basis for each of the series.
The IIFL Bonds would be issued at face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories. The allotment will be made on first come first served basis.
IIFL Samasta Finance’s MD and CEO Venkatesh N said, “IIFL Samasta Finance has a strong physical presence of across India through about 1,500 branches. It caters to the credit needs of underserved and unserved population, primarily women entrepreneurs from underprivileged background through a well-diversified portfolio. The funds raised will be used to meet credit demand from more such customers and bolster business growth.”
The lead managers to the issue are JM Financial Limited, IIFL Securities Limited, Nuvama Wealth Management Limited and Trust Investment Advisors Private Limited.
The NCDs will be listed on the BSE Limited and National Stock Exchange of India Limited (NSE), to provide liquidity to investors.
IIFL Samasta Finance had loan assets under management of Rs 12,196 crore at the end of September 2023; and has reported a profit of Rs 233 crore in the first six months of the current fiscal (FY24). It has a widespread network of 1,485 branches spanning the length and breadth of the country.
