India Infoline Investment Services Limited (IIISL or “the Company”), an NBFC subsidiary of India Infoline Limited (IIFL) will open, its maiden public issue of Secured Redeemable NCDs of the face-value of Rs. 1,000 each aggregating to Rs 375 crore, with an option to retain over-subscription up to Rs 375 crore, aggregating up to a total of Rs. 750 crore (the “Issue”). The NCD Issue with 3 investment options and yield on redemption of up to 11.90% (per annum) opens on August 4, 2011 and closes on August 12, 2011.
The NCDs will be listed on National Stock Exchange and Bombay Stock Exchange 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.
The proposed NCDs have been rated ‘[ICRA]AA- (stable)’ by ICRA, and 'CARE AA-' by CARE, indicating high degree of safety for timely servicing of financial obligations.
There are three investment options:
Option I (Annual interest payment): The redemption date or maturity period is 36 months from the deemed date of allotment and the coupon rate is 11.7% p.a. The interest payment is annual and the face value plus any interest that may have accrued is payable on redemption.
Option II:. NCDs will be redeemed at Rs 1446.18 at the end of 40 months from the deemed date of allotment with an effective yield of 11.7% per annum.
Option III (Annual interest payment): The redemption date or maturity period is 60 months from the deemed date of allotment. The coupon rate is 11.9% p.a. for Category III investors and 11.7% p.a. for others. The interest payment is annual and the face value plus any interest that may have accrued is payable on redemption.
The funds raised through this Issue will be used by the Company for various financing activities.
The Lead Managers to the Issue are Axis Bank Limited, JM Financial Consultants Private Limited and A.K. Capital Services Limited. The Prospectus is available on the website of the Company at www.iiflinvestments.com; and Exchanges at www.nseindia.com; www.bseindia.com and on the websites of Lead Managers at www.axisbank.com, www.jmfinancial.in and www.akcapindia.com.