IIFL Samasta Finance, a non-banking microfinance company (NBFC-MFI) in India, will raise funds amounting to ₹1,000 crore through its inaugural public offering of secured bonds. The objective behind this fundraising initiative is to support business expansion and bolster capital resources. These bonds present an interest rate of up to 10.50% and assure a high level of safety for investors.
The subscription period for the issue commenced on December 4, 2023, and concludes on December 15, 2023. IIFL Samasta operates under the umbrella of IIFL Finance, a leading retail-focused NBFC in India, managing loan assets totalling ₹73,066 crores.
The company is set to issue bonds amounting to ₹200 crore, accompanied by a green-shoe option to retain oversubscription, allowing for a total fundraising of up to ₹1,000 crore (including the initial ₹200 crore). The Non-Convertible Debentures (NCDs) are available in tenors of 24 months, 36 months, and 60 months. Investors have the option of receiving interest payments on a monthly or annual basis for each series.
Venkatesh N, MD and CEO, IIFL Samasta Finance, said, “IIFL Samasta Finance has a strong physical presence across India through about 1,500 branches. It caters to the credit needs of underserved and unserved populations, primarily women entrepreneurs from underprivileged backgrounds through a well-diversified portfolio. The funds raised will be used to meet credit demand from more such customers and bolster business growth.”
The primary managers overseeing the issue include JM Financial, IIFL Securities, Nuvama Wealth Management, and Trust Investment Advisors. The NCDs are slated for listing on the BSE and the National Stock Exchange of India (NSE) to facilitate liquidity for investors. The IIFL bonds are set to be issued at a face value of ₹1,000, and the minimum application size stands at ₹10,000 across all categories.
The company holds a credit rating of CRISIL AA-/Positive from CRISIL Ratings Limited and Acuite AA| Stable from Acuite Ratings and Research Limited. These ratings signify a high level of safety for the timely fulfillment of financial commitments and indicate very low credit risk associated with the instruments. Notably, Crisil recently upgraded the rating outlook for IIFL Samasta from ‘stable’ to “positive” earlier this month.
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Published: 05 Dec 2023, 08:01 PM IST