India Infoline Housing Finance Limited NCD (India Infoline Housing Finance NCD) Detail

IIFL Housing Finance Ltd (IIHFL), a wholly owned subsidiary of India Infoline Finance Ltd (IIFL) is engaged in the business of housing finance institution. They offer housing loans and Loans against property. Company's lending products include Mortgage Loans, which includes Retail Mortgage Loans and Corporate Mortgage Loans. Housing Loans includes finance for purchase of flats, construction of houses, extension and for improvement in the flats/homes and for acquiring plots of land (which are intended to be used for construction of houses). LAP is availed for, working
capital requirements, for business use or acquisition of new property and for financing construction projects.

Offerings

IIHFL is launching its maiden Home Bond offer on 12.12.13. This is the fourth offer from IIFL group in last three years and all its previous offers met with overwhelming response from investors and were closed earlier than the scheduled closures. This offer instrument is branded as Home Bonds by the company.

IIFL Housing Finance is offering a NCD having face value of Rs. 1000 each with a coupon rate of 11.52% p.a. payable monthly and having tenure of five years. As these NCDs will be listed on BSE and NSE it will provide liquidity at the discretion of the bond holder for early exit.

As these bonds are offering 11.52% p.a. with monthly interest payment, it amounts to annualized yield of 12.15%. Minimum application size is for 10 bonds i.e. Rs. 10000 and in multiples of Rs. 1000 (i.e. 1 bond) thereafter. This offer is made on “First-cum-First-Served” basis and the offer is for Rs. 250 crore with a green shoe option of retaining another Rs. 250 crore in case of oversubscription and thus the overall size of the offer is Rs. 500 crore.

The NCDs proposed to be issued under the issue have been rated “CRISIL AA-/Stable” by CRISIL and “CARE AA-“ by CARE indicating that these instrument have a high degree of safety regarding timely servicing of the financial obligations. The offer that opens on 12.12.13 will close on or before 20.12.13 based on response.

IIHFL has started its operations in 2009 and has posted above 95% and 92% CAGR in top and bottom-line in past three fiscals. The company is mainly engaged in home finance business and having its spread in tire-II and tire III cities and has back up of IIFL’s infrastructure spreading over 800 cities across India. The company is offering 11.52% interest on application money from the date of realization and thus, the offer brings rewards from day one. The company will not deduct TDS from the interest payments and thus it will provide better yields to investors.