India Infoline Finance Limited’s (IIFL) issue is currently open and will close on October 4, 2013.
Who can apply: Resident individuals, HUFs, partnership firms, companies and body corporates, banks, public financial institutions, national investment funds, mutual funds, venture capital, insurance companies, commercial banks, co-operative banks, public/private charitable trusts, industrial research organizations and other eligible categories.
Application size: The minimum application size is Rs 5,000 for 5 NCDs as the face value per debenture is Rs 1000. NCD aims to collect Rs 525 crore with an option to retain an additional Rs 525 crore if the issue oversubscribes.
Credit Ratings: CARE and BWR have assigned a rating of AA (Double A). Such instruments carry very low credit risk.
Tentative brokerage structure: The brokerage ranges between 1% (3 years) to 1.5% (5 years) per application offered upfront.
Effective yield and Maturity:
|
Series |
36 Months |
60 Months |
||
|
Tenure |
Monthly |
Annually |
Monthly |
Annually |
|
Effective Yield |
12.68% |
12% |
12.68% |
12% |
|
Post Tax Return for an individual falls under 30.90% tax bracket |
8.76% |
8.29% |
8.76% |
8.29% |
|
Post Tax Return for an individual falls under 20.60% tax bracket |
10.07% |
9.53% |
10.07% |
9.53% |
|
Post Tax Return for an individual falls under 10.30% tax bracket |
11.37% |
10.76% |
11.37% |
10.76% |
Note- the post-tax returns are calculated by a formula – rate*(1-tax rate)
Use of proceeds: The proceeds will be utilized in expansion of business related to granting of loans against mortgage of gold and immovable assets. Also, the money will be used to grant home loans in small cities and towns.
Who can sell the product: Registered stock brokers with any stock exchange along with their respective sub-brokers, banks and intermediaries selected by the issuing company.
How can an IFA get registered to sell the product: An IFA has to sign the sub-broker agreement with a stock broker to be eligible to sell the bonds.
Trustee: IDBI Trusteeship Services.
Registrars: Link Intime India Private Limited.
Depositories: NSCL and CDSL.
Listing: The issue will be listed on both BSE and NSE. The applicants can also apply in physical mode. However, for NRIs, the issue is only available in dematerialized form.
Withdrawal of applications: In the event of withdrawal or rejection of application form or for unsuccessful application forms, the application amount will be credited to the relevant account within 12 working days. There will be no interest paid on any such refunds.
Lead Managers: Axis Capital Limited, IIFL, Trust Investment Advisors Private Limited and IDBI Capital Market Services Limited.
Lead Brokers: Axis Capital Limited, IIFL, Trust Investment Advisors, Edelweiss Broking, Karvy Stock Broking, RR Equity Brokers, SMC Global Securities, Integrated Enterprises, JM Financial Services, HDFC Securities, SPA Securities and IDBI Capital Market Services.
IIFL has allocated 50% of NCDs for resident Indian individuals, 40% for institutional investors and 10% for non-institutional investors.
