IIFL Finance NCD issue: Opportunity to earn handsome money, Nirmal Jain tells Anil Singhvi in exclusive chat

In an exclusive chat with Zee Business Managing Editor Anil Singhvi, IIFL Chairman Nirmal Jain spoke about the Non-convertible Debentures (NCDs) issue that is set to open on Wednesday. The issue will remain open till 23rd March. Jain speaks about company’s strategy and how the allotment will likely happen.  

Jain said that the company expects to raise Rs 1000 cr through this issue. The company will issue the NCD at an effective yield of 10.03 per cent. The NCDs will be issued for the period of 7.25 years (87 months) 

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He said that the economy is recovering from the onslaught of the Coronavirus Pandemic well and there is a V shaped recovery. While the liquidity has improved the profitability of companies have also seen an uptick. 

The demand for credit is likely to go up as the economy further improves.  

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निवेशकों के लिए बड़ा मौका...

कल से 23 मार्च तक खुलेगा IIFL फाइनेंस का NCD इश्यू...

क्या है IIFL फाइनेंस की बिजनेस स्ट्रैटेजी?

कैसे होगा NCD इश्यू का अलॉटमेंट?

अनिल सिंघवी का SUPER EXCLUSIVE INTERVIEW कंपनी के चेयरमैन निर्मल जैन के साथ@AnilSinghvi_ @JainNirmal @IIFL_Finance pic.twitter.com/tBzcurmuF8

— Zee Business (@ZeeBusiness) March 2, 2021

The money raised from this issue by IIFL Finance will go to the tier-2 capital.  

He said that even during the times of low interest rates, IIFL Finance is giving interest rates around 10 per cent. This means that the money will get doubled at this rate on maturity. 

IIFL Finance has a loan book worth Rs 42,264 cr with 90 per cent of retail loans. IIFL Finance has presence in 2500 places.  

Investment 

Minimum application is at Rs 10,000. The investors can also opt for monthly income. Monthly income returns in fixed income deposits have come down significantly now, he added. So, if the investors are getting returns at the rate of 80 bps per month, then this IIFL Finance NCD is giving best returns in this category, he further said. 

Who Can Invest? 

There is no maximum limit of investment while the minimum limit is Rs 10,000. His advice to investors is not to do duplicate application. This investment is most suitable for individual investors, he said. As the investors are not inclined to put all their money in stock markets. Many want to put the money even in fixed income instruments. 

There will be no TDS deducted in this issue as the instruments will get listed, he said. 

Corporate, trusts, PF and banks can also invest, he said.  

Ratings of Bonds 

The bonds have a AA rating by Crisil while AA+ by Brickworks, he said.