IIFL Samasta to Raise up to Rs. 1,000 Crores via Bonds, Offers Up to 10.50% Return Per Annum
Chennai, 1st December, 2023: IIFL Samasta Finance, which is one of India’s largest non-banking microfinance companies (NBFC-MFI), will raise up to Rs 1,000 crores through its maiden public issue of secured bonds, for the purpose of business growth and capital augmentation. The bonds offer up to 10.50% and high degree of safety. The issue opens on Monday, December 4, 2023 and closes on Friday, December 15, 2023. IIFL Samasta is a part of IIFL Finance, which is one of India’s largest retail-focused NBFCs with loan assets under management of Rs 73,066 crore.
IIFL Samasta Finance 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 IIFL Samasta bonds offer highest coupon rate of 10.50% 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 credit rating is CRISIL AA-/Positive by CRISIL Ratings Limited and Acuite AA| Stable by Acuite Ratings and Research 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. IIFL Samasta received a rating outlook upgrade to ‘positive’ from ‘stable’ by Crisil earlier this month.
Mr Anantha Kumar T, Chief Financial Officer, IIFL Samasta Finance 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.”
IIFL Samasta Finance offers innovative and affordable financial products to women who are enrolled as members and organized as Joint Liability Group from unbanked sections in society including encompassing cultivators, agricultural laborers, vegetable and flower vendors, cloth traders, tailors, craftsmen, as well as household and industrial workers across rural, semi urban and urban areas in India.
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 FY24. IIFL Samasta Finance has a widespread network of 1,485 branches spanning the length and breadth of the country and has a strong workforce of 14,286 employees. IIFL Samasta Finance has consistently maintained low level of NPAs over the years of operations and continues to focus on good quality of assets. It has a Gross NPA of 2.11% and Net NPA of 0.57 % as a percentage of the Loan Book as on September 30, 2023.
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. 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 public issue opens on Monday, December 04, 2023 and closes on Friday, December 15, 2023, with an option of early closure. The allotment will be made on first come first served basis.
