Non-banking financial company 360 One Prime, formerly known as IIFL Wealth, announced on January 8 that it plans to raise up to ₹1,000 crore through maiden public issue of secured, rated, listed, redeemable Non-Convertible Debentures (NCDs).
The first tranche of the issue is set to be listed on the BSE, which is scheduled for subscription starting January 11, featuring a base issue size of ₹200 crore and the flexibility to retain oversubscription of up to ₹800 crore, as stated by the company.
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The NCDs would be issued at face value of ₹1,000 each, aggregating up to ₹1,000 crore. The public issue opens on Thursday, 11th January, 2024 and closes on Wednesday, 24th January, 2024, with an option of early closure or extension in compliance with Securities and Exchange Board of India Issue. The allotment will be made on a first come first served basis.
The funds generated from the offering will be allocated for advancing loans, financing or refinancing current debts, covering interest payments on existing borrowings, and fulfilling various general corporate needs.
The company presents an attractive coupon rate ranging from 8.91% to 9.66% per annum, determined by the chosen tenor (18, 24, 36, and 60 months). These offerings include both monthly and annual interest payment options and span across eight distinct series, as highlighted by Karan Bhagat, the Founder, and Chief Executive of the company.
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NCDs proposed to be issued under Tranche I Issue are rated CRISIL AA/Stable by CRISIL Ratings Limited and [ICRA]AA (Stable) by ICRA Limited, which indicates that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk.
“We have an experienced management team. Our loan approval and administration procedures, collection and enforcement procedures are designed to minimize delinquencies and maximize recoveries. Further, our processes have been standardized with the objective of providing high levels of service quality while maintaining process. The solutions offered by our Company are customized as per the clients’ requirements and credit profile,” Karan Bhagat, Founder, MD & CEO, 360 ONE said.
The lead managers to the issue are JM Financial Limited, A. K. Capital Services Limited and IIFL Securities Limited.
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“Our Company has a synergistic partnership with the 360 ONE Group, which ensures that clients receive best-of-the-class financial solutions. We have also benefitted by adopting good practices of 360 ONE group, which has helped in enhancing our Company’s risk underwriting abilities, which is reflected in our healthy asset quality over the years. We have an integrated technology platform for providing operational and decision-making support through the complete loan lifecycle. Our Company has credit ratings from agencies including CRISIL, CARE and ICRA. We believe our credit rating allows us to borrow funds at competitive rates from diverse sources,” said Himanshu Jain, CEO and Whole-time Director, 360 ONE Prime Limited.
As of March 2023, the firm’s assets under management stood at ₹4,927 crore and its had registered a net profit of ₹234.52 crore on a total revenue from of ₹673.66 crore.
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Published: 08 Jan 2024, 08:23 PM IST