India Infoline Housing Finance's (IIHFL) issue of secured, redeemable, non-convertible debentures (NCDs) of face value of Rs 1,000 each has opened for subscription today.
The issue will close on December 20, 2013. IIHFL, the housing finance arm of India Infoline, retains the option to close on such earlier date or extended date up to a period of 30 days from the date of opening of the issue.
The company aims to raise Rs 500 crore (NCD issue aggregating up to Rs 250 crore with an option to retain over-subscription up to Rs 250 crore).
IIHFL's maiden public issue of IIFL Home Bonds with 5-year tenor, is offering a coupon rate of 11.52 percent per annum payable monthly.
The NCDs proposed to be issued under this issue has been rated AA-/stable by CRISIL and AA- by CARE that indicates instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
The NCDs are proposed to be listed on the National Stock Exchange of India and BSE.
The funds raised through the issue, after meeting the expenditures of and related to the issue, will be used for the financing activities including lending and investments, repaying existing loans and business operations including for capital expenditure and working capital requirements.
Axis Capital Limited, Trust Investment Advisors Private Limited, India Infoline Limited and Edelweiss Financial Services Limited are the lead managers to the issue. RR Investors Capital Services (P) Limited, Karvy Investor Services Limited and SMC Capitals Limited are the co-lead managers to the issue. Link Intime India Private Limited is the registrar to the issue.
The recent NCD issue of India Infoline Finance, parent company of IIHFL, raised Rs 1,050 crore.
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