India Infoline Finance (IIFL), which is into insurance, brokerage, non-banking financial services such as gold loans among others, today said it will raise up to Rs 500 crore from the debt market.
The debt issue, which will open towards the month-end as it is awaiting regulatory approvals, comprises a base issue of un-secured redeemable non-convertible debentures (NCDs) with a face value of Rs 1,000 each aggregating up to Rs 250 crore with an option to retain over-subscription of similar amount, totaling up to Rs 500 crore, the company said in a statement here.
The financial services firm has not mentioned how it will use the proceeds from the debt issue.
The NCDs will be in the nature of subordinated debt and will be eligible for tier-II capital, the NBFC added.
The issue has an AA-(stable) rating from both Crisil and Icra and will be listed on the BSE and NSE.
Lead managers to the issue are Axis Bank, SBI Caps, Edelweiss Financial Services, Trust Investment Advisors and India Infoline.
The minimum application will be in the lot of Rs 5,000 (or five NCDs) and tenure of all NCDs issued under this issue is 72 months.
In FY12, the company had clocked net income of Rs 105.4 crore on an income of Rs 908.5 crore.
The IIFL Group offers advice and execution platform for a wide range of financial services covering products ranging from equities and derivatives to commodities, wealth and asset management, insurance, fixed deposits, loans, investment banking, Government bonds and other small savings instruments through its 4,000 business centres spread across 959 locations.
