India Infoline Finance NCD issue mops up Rs 1,200 crore

India Infoline Finance (IIFL) has raised Rs 1,200 crore through public issue of secured redeemable non-convertible debentures.

The company had launched NCD issue aggregating up to Rs 525 crore, with an option to retain oversubscription up to Rs 525 crore, aggregating to a total upto Rs 1,050 crore on September 17.

The issue closed on Monday.

"The company becomes the first non-banking finance company (NBFC) to collect record subscription of Rs 1,200 crore within five days period. Nearly 95 per cent of the amount subscribed was for monthly income plan," a company statement said.

"We are overwhelmed by record response with bids for Rs 1,154 crore to our Rs 525 crore NCD issue, particularly in the backdrop of such tight liquidity conditions and uncertain environment," India Infoline Group Chairman Nirmal Jain said.

The issue got a good response from retail investors who are looking for fixed monthly income returns, he said.

"A yield of 12.68 per cent offered by NCD is quite attractive in the present circumstances and ideal for those sections of investors looking for stable, secured and sustained monthly income. We have made it very simple and easy for all classes of investors to invest at the earliest through our 3,800 plus business locations and the additional network of our Lead Managers." India Infoline Group Managing Director R Venkataraman said.

"We have successfully maintained a low level of net NPA, which reflects our credit appraisal processes and internal control systems, even in this challenging economic environment. This is an excellent investment opportunity with a time frame of 3 to 5 years," he added.

The NCDs will be listed on both the National Stock Exchange and Bombay Stock Exchange and will have a tradable lot size of 1 NCD.