India Infoline Investment Services (IISL), a subsidiary of brokerage house India Infoline, will raise Rs 750 crore through debt placement. IISL is a non-banking financial company.
The public issue of secured redeemable non-convertible debentures (NCDs) of IISL will open for subscription on August 4. The NCDs carry a coupon rate of 11.9% interest per anum on 5 Year NCDs. The face value of NCDs would be Rs 1,000 each aggregating to Rs 375 crores, with an option to retain over-subscription up to Rs 375 crores, aggregating up to a total of Rs. 750 crores.
The NCDs will be listed on National Stock Exchange (NSE) and BSE and will have a tradable lot size of 1 NCD.
The NCDs proposed under this Issue have been rated ‘[ICRA]AA- (stable)’ by ICRA, and ‘CARE AA-' by CARE.
There are three investment options.
Option I (Annual interest payment): The redemption date or maturity period is 36 months from the deemed date of allotment and the coupon rate is 11.7% p.a. The interest payment is annual and the face value plus any interest that may have accrued is payable on redemption.
Option II:. NCDs will be redeemed at Rs 1,446 at the end of 40 months from the deemed date of allotment with an effective yield of 11.70% per anum.
Option III (Annual interest payment): The redemption date or maturity period is 60 months from the deemed date of allotment. The coupon rate is 11.9% per annum for Category III investors and 11.7% per annum for others. The interest payment is annual and the face value plus any interest that may have accrued is payable on redemption.
The funds raised through this issue will be used by the Company for various financing activities.