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• The company is a finance arm of 360 ONE Group.
• It made additional income from treasury for FY22 that boosted their top and bottom lines.
• This debt offer is rated AA/Stable by CRISIL and ICRA.
• The company offers lucrative coupon rates.
• Investors looking for steady income may park moderate funds for medium to long term.
ABOUT COMPANY:
360 One Prime Ltd. (360OPL) - erstwhile known as IIFL Wealth Prime Ltd.) is a wholly-owned subsidiary of 360 ONE WAM Limited, operating as a lending vehicle of the 360 ONE group. It is registered as a non-deposit taking non-banking financial company with the Reserve Bank of India. It is classified as a middle layer NBFC.
Its product suite primarily includes Loans against Securities (LAS), Loan- against-Property (LAP) and unsecured lending products. The Company provides customized lending solutions including financing against a combination of liquid and illiquid financial assets to meet all funding requirements of clients in form of term loans and advances.
Its Promoter, 360 ONE WAM Limited is one of India's leading wealth and alternates-focused asset firm (Source: CareEdge Report). 360 ONE Group offers advisory, wealth management, asset management, broking and distribution services to high-net-worth individuals (HNIs) and Ultra-HNIs. The Company, as the lending vehicle of the 360 ONE group leverages the 360 ONE group's dominant position in wealth and asset management industry to source and service its clients which are predominantly Ultra-HNIs and HNIs.
This synergistic partnership ensures that clients receive best of the class financial solutions, that helps in making 360 ONE WAM Limited and the Company in becoming major players in wealth management and non-banking finance space. It has also benefitted from tapping existing client relationship of the 360 ONE group.
As of September 30, 2023, its total borrowings (including debt securities and subordinated liabilities) were Rs. 5409.66 crore. Its Promoter's branches and touchpoints span 23 locations across India and five international offices across six geographies with employee strength of more than 1000 employees as of March 31, 2023.
ISSUE DETAILS:
The company is coming out with its maiden debt issue of Secured, Rated, Listed, Redeemable, Non-Convertible Debentures having a face value of Rs. 1000 each. It mulls raising Rs. 200 cr. base size and has a green shoe option to retain oversubscription to the tune of Rs. 800 cr. making an overall debt issue worth Rs. 1000 cr. against a shelf limit of Rs. 1500 cr. The issue opens for subscription on January 11, 2024, and will close on or before January 24, 2024.
The company has allocated 20% for Institutions, 20% for Non-Institutions, 30% for HNIs and 30% for Retail investors.
The joint lead managers for this offer are JM Financial Ltd., A K Capital Services Ltd., and IIFL Securities Ltd., while Link Intime India Pvt. Ltd. is the registrar of the issue. Beacon Trusteeship Ltd. is the Debenture Trustee.
The company is spending Rs. 15.38 cr. for this debt issue. From the net proceeds, it will utilize at least 75% for onward lending, financing, refinancing existing indebtedness or repayment/prepayment of certain borrowings, and maximum up to 25% for general corporate purposes.
This debt offer has tenors of 18 months, 24 months, 36 months, and 60 months. It offers coupon rates ranging from 8.91% to 9.66% as per the selection of series by the investors. Interest payment options are either Monthly or Annual. The minimum application to be made is for 10 NCDs (i.e. Rs. 10000) and in multiple of 1 NCD (i.e. Rs. 1000) thereon, thereafter. The allotment will be on "First Come- First Served" basis. Post allotment, NCDs will be listed on BSE.
ISSUE RATINGS:
The NCDs proposed to be issued under the Issue have been rated CRISIL AA/Stable (Pronounced as CRISIL double A rating with Stable outlook) for an amount of Rs. 1500 crores by CRISIL Ratings Limited and [ICRA]AA (stable) for an amount of Rs. 1500 crores by ICRA Limited.
Securities with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such securities carry very low credit risk. Ratings given by CRISIL Ratings Limited and ICRA are valid as on the date of this Tranche I Prospectus and shall remain valid on date of issue and allotment of NCDs and the listing of the NCDs on Stock Exchange unless withdrawn.
In case of any change in credit ratings till the listing of NCDs, the Company will inform the investors through public notices/ advertisements in all those newspapers in which pre issue advertisement has been given.
The rating is not a recommendation to buy, sell or hold the rated instrument and investors should take their own decisions. The rating may be subject to revision or withdrawal at any time by the assigning rating agency and each rating should be evaluated independently of any other rating.
FINANCIAL PERFOREMANCE:
On the financial performance front, for the last two fiscals, the company has posted a total income/net profit of Rs. 754.58 cr. / Rs. 282.80 cr. (FY22), Rs. 673.66 cr. / Rs. 234.52 cr. (FY23). For H1 of FY24 ended on September 30, 2023, it earned a net profit of Rs. 172.92 cr. on a total income of Rs. 458.31 cr. According to the management, additional income from treasury boosted its FY22 top and bottom lines. H1-FY24 performance indicates its growth trajectory and the company is poised for bright prospects ahead.
As of September 30, 2023, its paid-up equity capital of Rs. 305.49 cr. is supported by free reserves of Rs. 1151.20 cr. Its debt equity ratio of 3.71 as of September 30, 2023, will stand enhanced to 4.74 post this issue.
Review By Dilip Davda on January 7, 2024
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The 360 ONE Prime Tranche I NCD January 2024 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if 360 ONE Prime Tranche I NCD January 2024 worth investing. The 360 ONE Prime Tranche I NCD January 2024 Note sets the NCD expectations in systematic way which tells you if 360 ONE Prime Tranche I NCD January 2024 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in 360 ONE Prime Tranche I NCD January 2024 by providing NCD recommendations i.e. subscribe, avoid and neutral.
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