IIFL Home Finance To Raise Up To Rs 500 Crore Via NCD Issue
The base issue size is Rs 100 crore, with a greenshoe option of Rs 400 crore, IIFL Home Finance said.
IIFL Home Finance Ltd. aims to raise up to Rs 500 crore via the issuance of non-convertible debentures, the company's management said in a presentation on Friday. The base issue size is Rs 100 crore, with a greenshoe option of Rs 400 crore.
The NCD issue opened on Friday, and are 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.
The issue price is Rs 1,000 per NCD, and the minimum application size is 10 debentures, and in multiples of one NCD thereafter. This takes the minimum application amount to Rs 10,000.
The home finance company has reserved 20% of the NCD issue for institutions, 20% for non-institutional corporates, 30% for high networth individuals, and 30% for retail investors.
The objective behind the fundraise is to "support future growth", aligned with the government’s “housing for all” initiative, IIFL Home Finance said.
Focus On Affordable Housing
In the presentation to investors, IIFL Home Finance Chief Executive Director Monu Ratra noted that the company has a strong presence in the loans issued to affordable weaker sections and low-income groups.
Over 90% of the loans qualify under priority sector lending, the company's presentation stated. There is a balanced regional distribution across North, South, and West India.
The company's total loan disbursals have crossed 4.27 lakh, with loan portfolio comprising 78% home loans and 20% secured business loans.
The loans had an average ticket size of Rs 15 lakh, and were distributed across 387 branches in 19 states.
Sharing key financial metrics, IIFL Home Finance said its net profit in fiscal 2023 stood over Rs 1,000 crore, whereas the bottomline in the first half of fiscal 2024 reached Rs 553 crore.
The housing finance company has a workforce of approximately 5,500 employees, with approximately 4,463 in sales and collections.
The leverage ratio was disclosed to be 2.4, indicating low leverage and strong capital adequacy and on-book and off-book strategy to manage portfolios effectively.
The company also spoke about making strides in technology integration, which includes a proprietary app for loan processing, which will be fully digital with no physical files, a captive technology team enabling cost-effective operations and competitive acquisition costs and in-house monitoring, customer service, and collections.
