IIFL Home Finance Ltd., a subsidiary of IIFL Finance Ltd., plans to raise up to Rs 500 crore through non-convertible debentures at a face value of Rs 1,000 each, according to an exchange filing on Thursday.
IIFL Home Finance's public issue of secured, rated, listed and redeemable 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, it said.
The NCDs are fixed-income instruments with specific terms and interest rates, issued to raise funds without the option to convert them into equity.
Earlier in October, IIFL Finance announced that it would raise up to Rs 2,500 crore through debt instruments. The board of directors had approved the public issuance of secured, rated, listed, and redeemable NCDs in one or more tranches, pending regulatory and statutory approvals.
The fundraise plan comes more than a month after the Reserve Bank of India lifted the restrictions that had prevented IIFL Finance from lending against gold. These restrictions were imposed in March after the banking regulator identified significant lapses in the company's operations.
The share price of IIFL Finance closed 0.29% higher at Rs 421.45 apiece on the National Stock Exchange, compared to a 1.49% decline in the benchmark Nifty. The share price has fallen 27.23% in the last 12 months and 27.46% on a year-to-date basis.
Out of the six analysts tracking the company, four have a 'buy' rating on the stock and two recommend 'hold,' according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 28.4%.
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