IIFL Finance Limited NCD: Everything you need to know

9 Jun 2023 , 01:49 PM

IIFL Finance Limited is a Mumbai-based Non-deposit taking Non-Banking Financial Company (‘NBFC-ND-SI’) registered with the RBI. The company offers home loans, gold loans, business loans, Microfinance, real estate loan, and capital market finance. It is coming up with a debt offer which is starting for subscription from June 09 to June 22, 2023. Click here to apply in the IIFL Finance Limited NCD. 

The company is raising Rs 300 crore from the issue at a price of Rs 1000 each. Investors need to apply for a minimum of 10 NCDs in a lot. The company has received rating of CRISIL AA/Stable by CRISIL Limited and ICRA AA (stable) by ICRA Limited.

IIFL Finance Limited has reserved 10% quota for institutional investors, 10% for non-institutional investors and high net-worth each and 40% for retail investors.

The company will use the net proceeds from the issue towards onward lending, financing, and repayment of interest and principal of existing borrowings and other general corporate purposes.

These NCDs have tenures of 24 months, 36 months, and 60 months. It offers coupon rates from 8.35% to 9.00% based on the selection of investors. The frequency of interest payments will be Monthly, Annual or Cumulative as per the choice of investors. Allotment of these NCDs will be in dematerialized mode only. Application is to be made through ASBA mode only.

Check the coupon rates of NCDs of IIFL Finance Limited:

	Series 1	Series 2	Series 3	Series 4	Series 5	Series 6	Series 7
Frequency of Interest Payment	Annual	Cumulative	Annual	Cumulative	Monthly	Annual	Cumulative
Nature	Secured	Secured	Secured	Secured	Secured	Secured	Secured
Tenor	24 Months	24 Months	36 Months	36 Months	60 Months	60 Months	60 Months
Coupon (% per Annum)	8.35%	NA	8.50%	NA	8.65%	9.00%	NA
Effective Yield (% per Annum)	8.34%	8.35%	8.49%	8.50%	8.99%	8.99%	9.00%
Amount on Maturity (In Rs.)	Rs 1,000.00	Rs 1,174.25	Rs 1,000.00	Rs 1,277.60	Rs 1,000.00	Rs 1,000.00	Rs 1,539.35

 

RHP:

https://storage.googleapis.com/iifl-finance-storage/files/investor/offer-documents/India_Infoline_Limited_Tranche_II_Prospectus_2June2023_signed.pdf

Tax implications:

• Interest on debentures received by resident debenture holders would be subject to tax at the normal rates of tax in accordance with and subject to the provisions of the I.T. Act.
• As per section 2(29AA) read with section 2(42A) of the I.T. Act, a listed debenture is treated as a longterm capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.
• As per section 2(42A) of the I.T. Act, a listed debenture is treated as a short-term capital asset if the same is held for not more than 12 months immediately preceding the date of its transfer.
• In case debentures are held as stock in trade, the income on transfer of debentures would be taxed as business income or loss in accordance with and subject to the provisions of the I.T. Act.
• Income tax is deductible at source on interest on debentures, payable to resident debenture holders at the time of credit/ payment as per the provisions of section 193 of the I.T. Act.

IIFL Finance NCD Tranche II is managed by Edelweiss Financial Services Ltd, Trust Investment Advisors Private Limited, IIFL Capital Services Ltd, and Equirus Capital Private Limited. Link Intime India Private Ltdis the registrar of NCD and Vardhman Trusteeship Private Limited is debenture trustee to the same.