Monday, 21 June 2021

IIFL Home Finance files Draft Shelf Prospectus for Rs 5,000 cr NCD fund raise

 



Mumbai, 21 June, 2021: Retail focused and technology driven Housing Finance Company, IIFL Home Finance Ltd (“IIFLHFL”) has filed with a draft shelf prospectus with BSE Limited and National Stock Exchange of India Limited (“Stock Exchanges”) for a public issue of secured redeemable non-convertible debenture s (“Secured NCDs”) and / or Unsecured Subordinated Redeemable  non-convertible debentures (“Unsecured NCDs”) (Secured NCDs and Unsecured NCDs are collectively referred to as “NCDs”) for an amount aggregating upto Rs.50,000 Millions (“Shelf Limit”) (“Issue). The face value of each secured and unsecured NCD will be Rs 1000 each and will be issued in one or more tranches.

Objects of the NCD issue is for the purpose of onward lending, financing and for repayment/prepayment of interest and principal of existing borrowings of the company besides general corporate purposes. As on March 31, 2021 the companies CRAR - Tier 1 Capital, in accordance with the Reformatted Financial Statements was 19.61%.

Credit rating for the proposed NCDs is CRISIL AA/Stable by Crisil Ratings Ltd. and BWR AA+/Negative (Assigned) by Brickwork Ratings India Pvt Ltd. IIFLHFL’s main focus has been to provide loans to the first time home buyers in the economically weaker section and lower income segments in the suburbs of tier 1, tier 2 and tier 3 cities. Salaried and Self Employed customers account for 44.37% and 55.63% of its Rs. 206,936.87 million AUM as of March 31, 2021, which has grown at a CAGR of 20.64% over the last 5 Fiscal Years. It’s home loan avg ticket size is approx. Rs. 17.3 lakh.

In addition to having access to IIFL Groups 2300+ touch points, the company currently operates out of 125 branches across 16 states and 1 union territory across India.

85.16% of its housing loans have been sourced digitally in the last financial year 2021. The investment in technology has not only helped the company in improving customer experience, but also in reducing operating cost and development of new business opportunities.

 

Under the PMAY-CLSS scheme, IIFL Home Finance has helped empower over 43,000 customers with more than Rs.10 bn in subsidies as of March 31, 2021.

Lead Managers appointed to the issue are Edelweiss Financial Services Ltd, IIFL Securities Ltd*, ICICI Securities Ltd, Trust Investment Advisors Pvt Ltd and Equirus Capital Pvt Ltd

*IIFL Securities Limited is deemed to be our associate as per the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (Merchant Bankers Regulations). Further, in compliance with the provisions of Regulation 21A and explanation to Regulation 21A of the Merchant Bankers Regulations, IIFL Securities Limited would be involved only in marketing of the Issue.

 

Capitalised terms not defined herein shall have the same meaning as assigned to such terms in the Draft Shelf Prospectus dated June 17, 2021.

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