IIFL Finance To Consider Fundraise Via Debt Instruments On Dec. 23

IIFL Finance Ltd. on Wednesday said that it will consider raising funds on Dec. 23, in a meeting of the finance committee of the board of directors.

The company will consider and approve "issuance of secured debt instruments in the form of US Dollar and other foreign currency denominated notes", the company said in an exchange filing on Wednesday. The fundraise will be subject to market conditions and regulatory compliance.

It will also approve the conversion of the existing medium term note programme to a global medium term note programme. Only post this approval will the company be able to issue the debt instruments in foreign currency denominated notes.

IIFL Finance in October had said that it will raise up to Rs 2,500 crore through public issue of secured, rated, listed, redeemable non-convertible debentures in one or more tranches.

Days after the announcement its subsidiary IIFL Home Finance Ltd. announced plans to raise up to Rs 500 crore through NCDs, at a face value of Rs 1,000 each. The NCDs will have a base issue size of up to Rs 100 crore, with an oversubscription option to retain up to Rs 400 crore. The total number of securities proposed to be issued is 50 lakh.

The NCD issue was supposed to open on Friday and were scheduled to close on Dec. 19, the company said. The debentures being issued are secured, rated 'AA/stable', and are to be listed on stock exchanges, it added.

IIFL Finance stock rose as much as 5.19% during the day to Rs 438 apiece on the NSE. The stock closed 2.46% higher at Rs 426.65 per share. This compares with a 0.56% decline in the benchmark Nifty 50. The stock has fallen 31.70% in the last 12 months and 27.13% year-to-date.

Out of six analysts tracking the company, four maintain a 'buy' rating and two recommend a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 27.1%.