India Infoline Financial Ltd NCD (India Infoline NCD) Detail

India Infoline Financial Ltd. (IIFL), an NBFC arm of India Infoline is offering un-secured Reedeemable Non-Convertible Debentures of Rs. 1000 each to mobilize Rs. 500 crore including green shoe option. The offer is opening on 05.09.12 and will close on 18.09.12. Minimum application is to be made for 5 debentures and in multiple of 1 thereafter. Under this offer, the company is offering three investment options as under:

Option I (Monthly interest payment): The redemption date is 72 months from the deemed date of allotment and the coupon rate is 12.75% p.a. The interest payment frequency is monthly and the face value plus any interest that may have accrued is payable on redemption. The effective yield on this option is 13.52% per annum.

Option II (Annual interest payment): The redemption date is 72 months from the deemed date of allotment and the coupon rate is 12.75% p.a. The interest payment frequency is annual and the face value plus any interest that may have accrued is payable on redemption. The effective yield on this option is 12.75% per annum.

Option III (Redemption premium): NCDs will be redeemed at Rs 2,054.50 at the end of 72 months from the deemed date of allotment. The effective yield on this option is 12.75% per annum.

These debentures will be listed on BSE and NSE and thus provides eary liquidity. Issue is rated AA-/Stable by ICRA and CRISIL indicating high degree of safety for timely servicing of financial obligations and these instruments carry very low credit risk.

The lead managers to this offer are Axis Bank Limited, SBI Capital Markets Limited, Edelweiss Financial Services Limited, Trust Investment Advisors Private Limited and India Infoline Limited (only for marketing of the Issue), while the Co-lead managers to the Issue are RR Investors Capital Services (P) Limited and Karvy Investor Services Limited. Today when equity market is in dolldrum and investors are looking at high return investment options, these NCDs provide good opportunity.