IIFL Home Finance files Draft Shelf Prospectus for Rs 5,000 cr NCD fund raise
Chennai, 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 (“Sh elfLimit”) (“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 in terest 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 (Assign ed) 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 bran ches 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 cus tomer 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 Ser vices Ltd, IIFL Securities Ltd*, ICICI Securities Ltd, Trust Investme nt Advisors Pvt Ltd and Equirus Capital Pvt Ltd*IIFL Securities Limit ed is deemed to be our asso ciate as per the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (Merchant Bankers Regulations). Further, in comp liance 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. Capitali sed terms not defined herein shall have the same meaning as assigned to such terms in the Draft Shelf Prospectus dated June 17, 2021.
Disclaimer:
IIFL Home Finance Limited, subject to market conditions and other considerations, is proposing a public issue of Secured and Unsecured Redeemable Non-Convertible Debentures (“NCDs”) and has filed the Draft Shelf Prosp ectus dated June 17, 2021 (“Draft Shelf Prospectus”) with the BSE Limited and National Stock Exchange of India Limited. The Draft Shelf Prospectus is available on our website at https://www.iifl.com/india-infoline-housing-finance-ltd/offer-documents, on the website of the stock exchanges at www.bseindia.com and www.nselindi a.c om and the websites of the Lead Managers at www.edelweissfin.com, www.iiflcap.com, www.icicisecurit ies.co m, www.trustgroup.in and www.equirus.com. Investors proposing to participate in the Issue should invest only on the basis of information contained in the Shelf Prospectus and Tranche Prospectus(es) to be filed with Regi trar of Companies, Maharashtra at Mumbai . Investors should note that investment in NCDs involves a high de gree of risk and for details relating to the same, please refer to the section ‘Risk Factors’ beginning on page 17 of the Draft Shelf Prospectus. Potential Bidders should not rely on the Draft Shelf Prospectus filed with BSE Limit ed and National Stock Exchange of India Limited for making any investment decision.
About IIFL Home Finance:
Incorporated in 2006 and registered in 2009 with National Housing Bank (NHB), IIFL Home Finance Limited is a wholly-owned subsidiary of IIFL Finance Limited. The Company is one of India’s leading housing finance comp an ies and is a preferred choice for affordable home loan requirements. Through their affordable home loans, IIFL Home Finance makes people’s aspirations a reality.As one of the country’s leading fintech housing finance com panies, they are well-positioned with end-to-end digitised processes, strong competencies, and excellent custo mer service. IIFL HF leveraged technology to implement almost 100% home loan onboarding through digital plat forms in order to improve the experience for customers from the comfort of their homes. The shift to a digital footprint for applicants also allowed for a reduction in physical documentation, resulting in a paperless process.
With the vision of creating efficiency through focused efforts in their four growth pillars i.e. employees, organis ation, society and environment. With responsible, ethical and transparentbusiness strategies, IIFL Home Financ e remain committed to building sustainable value for all our stakeholders.The Company’s comprehensive produc t suite includes small ticket sized home loans, secured MSME Loans and project loans. Through accessible home loans, pan-India distribution network, efficient technology-led operations and transparent processes, IIFL Home Finance is well-placed to serve the needs of marginalized sections of the society. With robust asset quality, ethic al business approach and responsible social and environmental practices, the company continues to deliver the best-in-class customer experience.
