360 ONE Prime (previously known as IIFL Wealth Prime) is currently offering secured, rated, non-convertible debentures (NCDs) as part of its Tranche II issuance. The subscription period is open from May 24th to June 6th, 2024. This tranche features a base size of Rs 100 crore, with an option to accept oversubscriptions up to an additional Rs 400 crore, making the total potential issue size Rs 500 crore. The funds raised will be used for onward lending, refinancing existing debt, and general corporate purposes.
Investors can enter with a minimum investment of Rs 10,000, equating to 10 NCDs, each valued at Rs 1,000. The NCDs offer an attractive coupon rate of up to 9.85% per annum (specifically for Series 10) and an effective yield of up to 9.86% (for Series nine). These debentures come with tenors of 18 months, 24 months, 36 months, 60 months, and 120 months, offering both monthly and annual interest payment options across ten series.
The NCDs have received strong credit ratings, with CRISIL AA/Stable and ICRA AA (Stable), reflecting a moderate level of credit risk. They will be listed on the Bombay Stock Exchange (BSE).
360 ONE Prime operates as the lending arm of the 360 ONE group, a wholly owned subsidiary of 360 ONE WAM (formerly IIFL Wealth Management). As a non-bank financial company (NBFC) registered with the Reserve Bank of India, 360 ONE Prime specializes in providing loans against securities (LAS), property (LAP), and unsecured loans. The company offers tailored lending solutions, including financing against both liquid and illiquid financial assets, to meet the diverse funding needs of its clients through term loans and advances.
| Particulars | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 |
| Frequency of Interest Payment | Monthly | Annual | Monthly | Annual | Monthly |
| Nature | Secured | Secured | Secured | Secured | Secured |
| Tenor | 18 Months | 18 Months | 24 Months | 24 Months | 36 Months |
| Coupon (% per Annum) | 8.86% | 9.16% | 8.98% | 9.35% | 9.16% |
| Effective Yield (% per Annum) | 9.22% | 9.23% | 9.36% | 9.35% | 9.55% |
| Amount on Maturity (In Rs.) | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 |
| Particulars | Series 6 | Series 7 | Series 8 | Series 9 | Series 10 |
| Frequency of Interest Payment | Annual | Monthly | Annual | Monthly | Annual |
| Nature | Secured | Secured | Secured | Secured | Secured |
| Tenor | 36 Months | 60 Months | 60 Months | 120 Months | 120 Months |
| Coupon (% per Annum) | 9.55% | 9.21% | 9.60% | 9.44% | 9.85% |
| Effective Yield (% per Annum) | 9.55% | 9.60% | 9.60% | 9.86% | 9.84% |
| Amount on Maturity (In Rs.) | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 |
Over the past three fiscal years, the company’s financial performance has shown inconsistency in its top and bottom lines. For FY21, it reported a total income of Rs. 754.58 crore and a net profit of Rs. 282.80 crore. In FY22, the total income was Rs. 671.81 crore, with a net profit of Rs. 234.52 crore. For FY23, the total income increased to Rs. 897.21 crore, while the net profit was Rs. 273.63 crore. As of March 31, 2024, the company had a paid-up equity capital of Rs. 305.49 crore, supported by other equity worth Rs. 1133.64 crore. Its debt-equity ratio stood at 4.63, which is expected to rise to 4.97 after the current issue.
The corporation has been landing its subsequent debt offer since January three years ago. Despite maintaining its credit, has reduced entry point interest as well as increased upper-band interest rates. The company was inconsistent in both sales and earnings during these periods. Therefore, those who want an income on investment can put some part of their moderate amounts into for some time.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
Published on: May 27, 2024, 1:59 PM IST
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