Distributors look at marketing the bond issue to investors seeking higher returns
India Infoline Finance Ltd (IIFL) announced the launch of its un-secured redeemable non-convertible debentures of face value of Rs 1000 each worth Rs 500 crore, including green-shoe option. It is offering 12.75% interest on these bonds.
The issue is set to close on September 18 but could close earlier is it’s subscribed fully. The bonds will be in the nature of subordinated debt and will be eligible for tier-II capital.
With equity markets continuing to remain volatile, many distributors are finding this to be an attractive product to sell. With decent returns at a marginal higher risk and aggressive marketing campaign, the issue is expected to be oversubscribed easily.
Issue Details
The issue comes with three options. The monthly income option will pay Rs 1062 per month on an investment of Rs1 lakh while the cumulative option would fetch Rs 2.05 lakh after 6 years. Investors also have a yearly option to choose from.
Listing: NSE & BSE
Minimum Application: Rs 5,000
Rating: [ICRA] AA- (stable) by ICRA and AA-/Stable' by CRISIL
Lead managers: Axis Bank and SBI Capital Markets, Edelweiss Financial Services, Trust Investment Advisors and India Infoline (only for marketing of the Issue)
Co-lead managers: RR Investors Capital Services and Karvy Investor Services
