IIFL Finance Limited NCD January 2023: Everything you need to know

5 Jan 2023 , 10:15 AM

IIFL Finance Ltd, a Mumbai-based is a non-depository taking NBFC registered with RBI. The company offers a wide range of products in the form of home loans, gold loans, business loans, microfinance, construction and real estate finance and capital market finance. It is coming up with a debt offer which is starting for subscription from January 06 to January 18, 2023. Click here to apply in the IIFL Finance Limited NCD. 

The company is raising Rs 1000 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 Ltd has reserved 10% quota for institutional investors, 10% for non-institutional investors, 40% for high net-worth investors and 40% for retail investors.

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

These NCDs have tenures of 24 months, 36 months, and 60 months. It offers coupon rates from 8.50% 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 Edelweiss Financial Services 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
Tenor	24 months	24 months	36 months	36 months	60 months	60 months	60 months
Coupon Rate (Retail)	8.50%	NA	8.75%	NA	8.65%	9.00%	NA
Effective Yield (% per Annum)	8.49%	8.50%	8.74%	8.75%	9.00%	8.99%	9.00%
Amount on Maturity	Rs 1000	Rs 1177.50	Rs 1000	Rs 1286.45	Rs 1000	Rs 1227	Rs 1539

 

RHP:

https://storage.googleapis.com/iifl-finance-storage/files/investor/offer-documents/IIFL%20Finance%20Limited%20-%20Tranche%20Prospectus.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 long-term 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.

On the financial performance front, The total revenue of IIFL Finance Limited for fiscal 2022, 2021, and 2020 were Rs. 7006.279 crore, Rs. 598.969 crore, and Rs. 4926.125 crore, respectively.

IIFL Finance NCD is managed jointly by Edelweiss Financial Services Ltd, Elara Capital (India) Pvt Ltd, IIFL Capital Services and Trust Investment Advisors Private Limited. Link Intime India Pvt Ltd is the registrar of NCD and Vardhman Trusteeship Private Limited is debenture trustee to the same.