IIFL Samasta Finance Launches Maiden Public Issue of Secured Bonds Offering 10.50% Return, Aiming to Raise Rs 1,000 Crore

Hyderabad: IIFL Samasta Finance, a prominent non-banking microfinance company (NBFC-MFI) in India, has embarked on its inaugural public issue of secured bonds, intending to raise up to Rs 1,000 crores for furthering business expansion.

The bonds present an attractive return of 10.50% coupled with a high degree of safety. The issuance period is set to conclude on Friday, December 15, 2023.

The company has issued bonds worth Rs 200 crores, with a green-shoe option allowing for oversubscription up to Rs 800 crores, aggregating to a total of Rs 1,000 crores. Featuring a tenor of 60 months, the IIFL Samasta bonds offer the highest coupon rate of 10.50% per annum.

The Non-Convertible Debentures (NCDs) are available in tenors of 24 months, 36 months, and 60 months, with interest payment frequencies varying between monthly and annually across each series.

Impressively rated CRISIL AA-/Positive by CRISIL Ratings Limited and Acuite AA| Stable by Acuite Ratings and Research Limited, the IIFL Samasta bonds assure a high degree of safety for timely financial obligations and carry minimal credit risk. The recent positive rating outlook upgrade by Crisil further underscores the company’s financial stability.

Mr. Mohan Kumar, Head of Treasury at IIFL Samasta Finance, stated, “The funds raised will be instrumental in meeting the credit demand from underserved and unserved populations, particularly women entrepreneurs from underprivileged backgrounds. We aim to strengthen our business growth while continuing to serve the diverse credit needs of our customers.”

IIFL Samasta Finance specializes in offering innovative and affordable financial products to women, particularly those organized as Joint Liability Groups across rural, semi-urban, and urban areas in India. As of September 2023, the company reported loan assets under management of Rs 12,196 crores, with a profit of Rs 233 crores in the first half of FY24. The company maintains a robust network of 1,485 branches across the country, supported by a dedicated workforce of 14,286 employees.

With a focus on maintaining high asset quality, IIFL Samasta Finance boasts a Gross NPA of 2.11% and Net NPA of 0.57% as a percentage of the Loan Book as of September 30, 2023.

The public issue, managed by lead managers JM Financial Limited, IIFL Securities Limited, Nuvama Wealth Management Limited, and Trust Investment Advisors Private Limited, will see the NCDs listed on the BSE Limited and National Stock Exchange of India Limited (NSE) to ensure liquidity for investors. The IIFL Bonds are issued at a face value of Rs 1,000, with a minimum application size of Rs 10,000 across all categories.

Investors can participate in the public issue until Friday, December 15, 2023, with an option for early closure. The allotment will be on a first-come, first-served basis.

For detailed terms on each series of the Secured NCDs, prospective investors are encouraged to refer to the official documentation.