IIFL Home Finance, a retail-focused housing finance company, said Tuesday that it plans to issue non-convertible debentures (NCDs) to raise Rs 1,000 crore.The tranche 1 issue has a base issue of Rs 100 crore, and a greenshoe option at Rs 900 crore. This could add up to Rs 1,000 crore.The issue will be available for subscription from July 6th, 2021 and close on July 28th, 2021. There is an option to extend or cancel the subscription early.The NCD has an 87-month tenor and offers several subscription options with coupon rates that range from 9.60 to 10 percent per year.The company will use the fund for financing and onward lending. It will also be used to repay principal and interest on existing loans. The balance will be used for corporate general purposes.Our asset under management (AUM), grew 12 percent last year. In June, we saw a strong recovery in business. Monu Ratra, CEO and Executive Director of the company, said that they are optimistic about growth over the next nine months. They are expecting a 15% increase in AUM this year.Nirmal Jain, Chairman of IIFL Group, stated that the issue offers investors an opportunity to lock in a high interest rate.Jain stated that it offers a great opportunity to grow our business and increase our capital adequacy, as well as generate more profit.The CRAR (capital-to-risky assets ratio) of the housing finance company was 19.61 percent as of March 31, 2021.CRISIL AA/Stable has been assigned to the unsecured NCDs and BWR AA+/ Negative. The NCDs will be listed on NSE and BSE.
