Fund Raising ALERT! IIFL Home Finance files Draft Shelf Prospectus for Rs 5,000 cr NCD fund raise

IIFL Home Finance, a retail-focused and technology-driven housing finance company, has filed a draft shelf prospectus for Rs 5,000 crore non-convertible debentures (NCD) fund raise. 

The company has filed the prospectus on Monday, June 21 with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The face value of each secured and unsecured NCD will be Rs 1,000 each and will be issued in one or more tranches.

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The objective of the NCD issue is for onward lending, financing and for repayment/prepayment of interest and principal of existing borrowings of the company, besides general corporate purposes. As of March 31, 2021, the companies CRAR - Tier 1 Capital, in accordance with the reformatted financial statements was 19.61 per cent. 

Credit rating for the proposed NCDs is CRISIL AA/Stable by Crisil Ratings and BWR AA+/Negative (Assigned) by Brickwork Ratings India.  

IIFL Home Finance’s main focus has been to provide loans to the first-time home buyers in the economically weaker section and lower-income segments in the suburbs of tier 1, tier 2 and tier 3 cities.  

Salaried and self-employed customers account for 44.37 per cent and 55.63 per cent, respectively, of its Rs 206,93.69 crore assets under management (AUM) as of March 31, 2021, which has grown at a CAGR of 20.64 per cent over the last 5 fiscal years. Its home loan average ticket size is approximately Rs 17.3 lakh. 

In addition to having access to IIFL Groups 2300-plus touch points, the company currently operates out of 125 branches in 16 states and 1 union territory across India. 

Over 85.16 per cent of its housing loans have been sourced digitally in the last financial year 2021. The investment in technology has not only helped the company in improving customer experience, but also in reducing operating cost and development of new business opportunities. 

Under the PMAY-CLSS scheme, IIFL Home Finance has helped empower over 43,000 customers with more than Rs 1,000 crore in subsidies as of March 31, 2021. 

Lead managers appointed to the issue are Edelweiss Financial Services, IIFL Securities, ICICI Securities, Trust Investment Advisors, and Equirus Capital.