IIFL Finance Limited , a prominent player in the Indian financial services sector, has successfully raised INR 125.00 crores through the issuance of Non-Convertible Debentures (NCDs). Additionally, the company has secured shareholder approval for further capital raising initiatives and a new director appointment.

NCD Issuance Details

Security and Repayment Structure

The debentures are backed by a robust security structure, featuring a first ranking pari passu charge over receivables. This charge is maintained at a minimum of 1.00x coverage, providing an additional layer of security for investors.

Interest Payment and Principal Repayment Schedule

• Interest Payment Dates: April 5, 2024, and April 15, 2024
• Principal Repayment: April 15, 2024

This structured payment schedule allows for regular interest payouts to investors, with the principal amount to be repaid at the end of the tenor.

Listing Details

IIFL Finance Limited plans to list these debentures on the National Stock Exchange of India Limited (NSE). This listing will potentially provide liquidity to investors and enhance the transparency of the instrument.

Shareholder Approvals via Postal Ballot

In a separate development, IIFL Finance Limited completed a postal ballot conducted through remote e-voting, with shareholders approving two key resolutions:

1. A special resolution to raise capital through a qualified institutions placement to eligible investors, passed with 99.90% approval (296,048,641 votes in favor versus 303,816 against).
2. An ordinary resolution to appoint Mr. T S Ramakrishnan (DIN: 09515616) as a Non-Executive Nominee Director, approved with 99.31% support (294,319,648 votes in favor versus 2,032,809 against).

The voting process ran from November 6, 2023 to December 5, 2023, with 72,158 total shareholders on record as of November 1, 2023. Both resolutions were deemed passed on December 5, 2023, with scrutinizer Nilesh Shah & Associates confirming the results met requisite majority requirements.

Implications for IIFL Finance

The successful NCD issuance and shareholder approvals highlight IIFL Finance's multi-faceted approach to capital management and corporate governance. The NCD issuance demonstrates the company's ability to tap into the debt market for its funding needs, while the shareholder approvals pave the way for potential future capital raising and strengthen the company's leadership.

For investors, these developments offer various opportunities, from secured debt instruments to potential equity participation, underlining IIFL Finance's commitment to growth and stakeholder value creation.

As IIFL Finance continues to navigate the dynamic financial services landscape, these strategic moves could support its growth initiatives and operational requirements in the coming years.

IIFL Finance Limited , a prominent player in the Indian financial services sector, has announced a significant move to bolster its capital base. The company's board has given the green light for a ₹300 crore perpetual debt issue through private placement, marking a strategic step in its ongoing efforts to strengthen its financial position.

Key Details of the Debt Issue

The Finance Committee of IIFL Finance's Board of Directors approved the terms and conditions for the issuance of Listed, Unsecured, Non-Convertible Perpetual Debentures. Here are the crucial aspects of this debt issue:

• Issue Size: Up to ₹300.00 crore, with a base issue size of ₹50.00 crore and a green-shoe option to retain oversubscription up to ₹250.00 crore
• Number of Debentures: Up to 300 Non-Convertible Debentures (NCDs)
• Face Value: ₹1.00 crore per NCD
• Listing: To be listed on the National Stock Exchange of India Limited
• Tenure: Perpetual, with no fixed maturity date
• Security: Unsecured

Implications and Strategic Importance

This perpetual debt issue is a significant development for IIFL Finance for several reasons:

1. Capital Strengthening: The ₹300.00 crore raised will provide IIFL Finance with additional tier-1 capital, enhancing its overall capital adequacy.

2. Flexibility: Perpetual debt instruments offer the advantage of no fixed maturity date, providing the company with long-term funding stability.

3. Investor Appeal: Listed NCDs can be attractive to institutional investors looking for steady, long-term income streams.

4. Regulatory Compliance: The issuance is subject to regulatory approvals, including from the Reserve Bank of India (RBI), especially for any potential call option exercise after a minimum of 10 years.

Additional Terms

• Call Option: IIFL Finance retains the right to exercise a call option after a minimum of 10 years from the deemed date of allotment, subject to RBI approval.
• Default Clause: In case of delayed payments, the company will pay an additional interest of 2% p.a. over the coupon rate until the default is rectified.

This strategic move by IIFL Finance demonstrates the company's proactive approach to capital management and its commitment to maintaining a robust financial structure. As the financial services landscape continues to evolve, such initiatives may play a crucial role in positioning IIFL Finance for sustained growth and stability in the competitive market.