India Infoline Finance Ltd. (IIFL Finance), a non-banking financial company, is planning to raise up to ₹2,000 crore through bonds to meet its growth plans, said a top official.
“We are coming out with a unsecured redeemable non-convertible debentures aggregating to ₹250 crore,” said R. Venkataraman, MD, IIFL Holdings.
“The issue opens on January 22 and comes with a green-shoe option to retain oversubscription of up to ₹1,750 crore.” The firm plans to use the amount for lending, financing and repayment/pre-payment of interest and principal of existing borrowings. The bonds will be listed on the BSE and NSE, according to the company.
Mentioning that they had gross non-performing assets of 2.2% and net NPAs of 1%, he said they had a few stressed assets in the kitty relating to real estate sector. There was a small increase in NPAs due to change in recognition norms, he said.
According to him, IIFL Finance had been posting a compounded annual growth rate of 20% to 25% for the past few years and it hoped to maintain 20% growth rate in the future too. Going forward, it would focus on retail, micro and home loans.
During the first six months of the current year, IIFL Finance posted a net profit of ₹357.2 crore, an increase of 69% over the corresponding year-earlier period. Its loan assets under management, which was predominantly retail, registered 40% growth to reach ₹36,373 crore. It was mainly driven by small-ticket home loans (59%), SME finance loans (113%) and micro-finance loans (259%).
