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• This is the 2nd debt offer from the company since January 2024.
• The company is a financial arm of IIFL group.
• This offer is rated CRISIL AA/ Stable and ICRA AA/Stable.
• The company posted inconsistency in its top and bottom lines for the reported periods.
• Investors looking for a steady income may park moderate funds for the medium term.
ABOUT COMPANY:
360 One Prime Ltd. (TOPL) - 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 under Section 45-IA of the Reserve Bank of India Act ("NBFC") and classified as a middle layer NBFC.
Its products 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.
It has a robust and comprehensive credit assessment and risk management framework to identify, monitor and manage risks inherent in its lending operations. Company's credit assessment and risk management framework comprises of a framework, spanning across the (i) screening stage, where its private lending advisors conduct an initial screening of prospective borrowers; (ii) the evaluation stage, where credit team evaluates the prospective borrower's business and financing needs and investigates the prospective borrower's track record, market reputation and ability to repay any loans extended to it.
As of March 31, 2024, its total borrowings (including debt securities (Including derivative component) and subordinated liabilities) were Rs. 6656.54 cr. Its Promoter's branches and touchpoints span 28+ locations across India and five international offices across six geographies with employee strength of more than 1,200 employees as of March 31, 2024. As of March 31, 2024, it had 59 employees.
ISSUE DETAILS:
The company is coming out with its second debt offer of NCD Tranche-II, May 2024 issue. Its maiden debt offer was in the month of January 2024.The company will be issuing overall 5000000 secured, rated, listed, redeemable, non-i.e. Rs. 1000) thereon, thereafter. Post allotment, NCDs will be listed on BSE. The company is spending Rs. 7.22 cr. for this issue and from the net proceeds it will utilize at least 75% for onward lending, financing/refinancing the existing indebtedness and/or repayment/prepayment of interest and principal of existing borrowings, and up to 25% for general corporate purposes.
This debt offer is jointly lead managed by Trust Investment Advisors Pvt. Ltd., A K Capital Services Ltd., and IIFL Securities Ltd., while Link Intime India Pvt. Ltd. is the registrar to the issue and Beacon Trusteeship Ltd. is the Debenture Trustee. The company has allocated 25% each for Institutions, Non-Institutions, HNIs and Retail categories.
The company is offering coupon rates ranging from 8.86% to 9.85%, and has tenors of 18 months, 24 months, 36 months, 60 months and 120 months. The interest payment options available is Monthly or Annual as per the selection of the series.
CREDIT RATINGS:
This debt offer is rated CRISIL AA/Stable by Crisil Ratings Ltd., and ICRA AA/Stable by ICRA Ltd. 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.
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. The rating agencies have a right to suspend or withdraw the rating at any time on the basis of factors such as new information.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, it has posted a total income/net profit of Rs. 754.58 cr. / Rs. 282.80 cr. (FY21), Rs. 671.81 cr. / Rs. 234.52 cr. (FY22), and Rs. 897.21 cr. / Rs. 273.63 cr. (FY23). Thus it posted inconsistency in its top and bottom lines for the reported periods.
As of March 31, 2024, it had a paid up equity capital of Rs. 305.49 cr. supported by other equity worth Rs. 1133.64 cr. Its debt-equity ratio of 4.63 as of March 31, 2024, will stand enhanced to 4.97 after this issue.
Review By Dilip Davda on May 20, 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 II NCD May 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 II NCD May 2024 worth investing. The 360 ONE Prime Tranche II NCD May 2024 Note sets the NCD expectations in systematic way which tells you if 360 ONE Prime Tranche II NCD May 2024 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in 360 ONE Prime Tranche II NCD May 2024 by providing NCD recommendations i.e. subscribe, avoid and neutral.
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