IIFL Finance Limited has announced the early closure of its public issue of Non-Convertible Debentures (NCDs), set to conclude on April 11, nearly two weeks ahead of the initially planned date. The decision, made by the Finance Committee of the Board of Directors, comes in response to the issue's performance since its opening on April 7.

Issue Details

The NCD issue aims to raise up to ₹500.00 crore, operating within a larger shelf limit of ₹2,500.00 crore. Key features of the NCDs include:

• Secured, rated, and listed status
• Redeemable nature
• Face value of ₹1,000.00 per debenture

Structure and Subscription

The issue is structured with a base size of ₹100.00 crore and includes a green shoe option of up to ₹400.00 crore, allowing for oversubscription. Interested investors can participate in the subscription process until 3:00 p.m. on the revised closing date of April 11.

Early Closure Implications

The decision to close the issue ahead of schedule may indicate strong investor interest, potentially allowing IIFL Finance to achieve its fundraising target earlier than anticipated. This move could be seen as a positive sign for the company's ability to attract capital in the current market environment.

Investor Considerations

Potential investors should note the revised timeline:

This change shortens the window for investment decisions, requiring interested parties to act promptly if they wish to participate in the NCD issue.

IIFL Finance's strategic decision to close the NCD issue early demonstrates the company's responsive approach to market dynamics and investor demand. As the financial landscape continues to evolve, such flexible fundraising strategies may become increasingly common among financial institutions seeking to optimize their capital-raising efforts.

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.