Aug 29, 2012, 04.48 PM IST

India Infoline Finance NCDs to open on September 5

India Infoline Finance, an NBFC subsidiary of India Infoline, will open a public issue of un-secured redeemable non-convertible debentures of face value of Rs 1,000 each aggregating up to Rs 2,500 million, with an option to retain oversubscription up to Rs 2,500 million, aggregating to a total of Rs 5,000 million, on September 5, 2012.

Source: Moneycontrol.com

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India Infoline Finance, an NBFC subsidiary of India Infoline , will open a public issue of un-secured redeemable non-convertible debentures (NCDs) of face value of Rs 1,000 each aggregating up to Rs 2,500 million, with an option to retain oversubscription up to Rs 2,500 million, aggregating to a total of Rs 5,000 million, on September 5, 2012.

The NCDs will be in the nature of subordinated debt and will be eligible for Tier-II capital. The NCD Issue has three investment options and the yield on redemption is 13.52%, 12.75% and 12.75% (per annum) for Option I, II, III respectively. The issue closes on September 18, 2012.

The NCDs will be listed on National Stock Exchange of India Limited and BSE and will have a tradable lot size of 1 NCD. The face value of NCD is Rs 1,000 and minimum application is Rs 5,000 (5 NCDs).

The NCDs proposed under this Issue have been rated AA- (stable) by ICRA, and AA-/stable by CRISIL. The above ratings indicate high degree of safety for timely servicing of financial obligations and these instruments carry very low credit risk.

There are three investment options:

Option I (monthly interest payment): The redemption date is 72 months from the deemed date of allotment and the coupon rate is 12.75% p.a. The interest payment frequency is monthly and the face value plus any interest that may have accrued is payable on redemption. The effective yield on this option is 13.52% per annum.

Option II (annual interest payment): The redemption date is 72 months from the deemed date of allotment and the coupon rate is 12.75% p.a. The interest payment frequency is annual and the face value plus any interest that may have accrued is payable on redemption. The effective yield on this option is 12.75% per annum.

Option III (redemption premium): NCDs will be redeemed at Rs 2,054.50 at the end of 72 months from the deemed date of allotment. The effective yield on this option is 12.75% per annum.

The lead managers to the proposed public issue of NCDs are Axis Bank Limited, SBI Capital Markets Limited, Edelweiss Financial Services Limited, Trust Investment Advisors Private Limited and India Infoline Limited (only for marketing of the Issue), while the co-lead managers to the issue are RR Investors Capital Services (P) Limited and Karvy Investor Services Limited.