IIFL Samasta Finance Limited is launching its Tranche II of secured, redeemable, non-convertible debentures (Secured NCDs) from June 3, 2024, to June 14, 2024. The issue size for this tranche is Rs 1,000 crores, with a base issue size of Rs 200 crores and an oversubscription option of Rs 800 crores. The total shelf issue size is Rs 2,000 crores. The NCDs are priced at Rs 1,000 each with a face value of Rs 1,000 per NCD. Investors must purchase a minimum of 10 NCDs, and subsequent purchases can be made in multiples of 1 NCD. The debentures will be listed on both the BSE and NSE. The issue has been rated CRISIL AA-/Watch Developing by CRISIL Ratings Limited and ‘ACUITE AA | Rating Watch Negative Implications’ by Acuite Ratings & Research.
The debentures come with tenors of 24, 36, and 60 months, spread across Series I to VI, and offer payment frequencies of both monthly and annually. The basis of allotment will be on a first-come, first-serve basis. Beacon Trusteeship Limited will act as the debenture trustee for this issue.
| Particulars | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 |
| Frequency of Interest Payment | Monthly | Annual | Monthly | Annual | Monthly | Annual |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 36 Months | 36 Months | 60 Months | 60 Months |
| Coupon (% per Annum) | 9.20% | 9.60% | 9.57% | 10.00% | 10.03% | 10.50% |
| Effective Yield (% per Annum) | 9.60% | 9.60% | 10.00% | 10.00% | 10.50% | 10.49% |
| Amount on Maturity (In Rs) | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 |
The company intends to utilize the net proceeds from the issue for onward lending, financing or refinancing its existing indebtedness, and/or debt servicing, which includes the payment of interest and the repayment or prepayment of interest and principal on existing borrowings. Additionally, the proceeds will be used for general corporate purposes.
The ratings for the NCDs set to be issued under this Tranche II Prospectus have been updated. CRISIL Ratings Limited reaffirmed their rating of CRISIL AA-/Watch Developing (remaining on ‘Rating Watch with Developing Implications’) for an amount of Rs2,000 crore, as per their letter dated May 8, 2024. Additionally, Acuite Ratings & Research Limited revalidated their rating as ‘ACUITE AA | Rating Watch Negative Implications’ for another Rs 2,000 crore, according to their letter dated May 10, 2024
Over the last two fiscal years, the company has demonstrated varied financial performance. For FY23, it recorded a total income of Rs. 1,753.31 crore and a net profit of Rs. 128.18 crore. In the subsequent fiscal year, FY24, the total income increased to Rs. 2,770.73 crore, while the net profit saw a significant rise to Rs. 503.04 crore.
There were some issues with the clarity of the financial statement pages, as they had blurry impressions.
The company, a subsidiary of IIFL Finance Ltd., has delivered an impressive financial performance in FY24 compared to FY23. Despite this success, a change in its rating has raised some concerns. For well-informed investors seeking steady, regular income, this company could be a good option for medium to long-term investment.
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: Jun 4, 2024, 3:20 PM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
