IIFL Samasta Finance, a subsidiary of IIFL Finance, is set to raise Rs 1,000 crore through its maiden public bond issue. The bond issue, offering an interest rate between 9.6% and 10.5%, aims to support the company’s growth and capital augmentation. IIFL Samasta, a leading Non-Banking Financial Company-Microfinance Institution (NBFC-MFI), has exhibited robust growth, with a Compound Annual Growth Rate (CAGR) of 68% in the last five years and plans to maintain a growth rate of 25%-30% over the next three years. The bond issue was open from December 4 and was available until December 15.
IIFL Finance, holding 99% in IIFL Samasta, has committed to infusing Rs 200 crore through a rights issue of 7.5 crore fully paid-up equity shares of face value Rs 10 each at a premium of Rs 16.74 per share. The company raised Rs 5,239 crore of debt in the first half of FY24, predominantly through term loans and privately placed bonds. In the second half, it planned to borrow about Rs 6,000 crore, with undrawn sanctions of Rs 1,250 crore.
For the bond issue, IIFL Samasta planned to sell secured redeemable non-convertible debentures (NCDs) with a base component of Rs 200 crore, retaining the right to oversubscription up to Rs 800 crore. The bonds have been rated “AA-/Positive” by Crisil Ratings and “AA/Stable” by Acuite Ratings, indicating a high degree of safety. The bonds were structured to offer 10.50% for a 60-month tenure, with rates for 24 and 36 months’ maturity set at 9.60% and 10%, respectively. The company, which began operations in 2008 in Tamil Nadu, has expanded to 1,485 branches across 22 states, with a significant focus on Bihar, Karnataka, Rajasthan, Tamil Nadu, and West Bengal.
This strategic move by IIFL Samasta Finance highlights the company’s commitment to growth and diversification of its borrowing profile, setting a firm foundation for its future expansion and stability in the financial market.