IIFL arm to raise Rs 750 cr from NCD issue, IBN Live News

IIFL arm to raise Rs 750 cr from NCD issue

PTI | 11:08 PM,Aug 02,2011

Mumbai, Aug 2 (PTI) Broking firm India Infoline's NBFC subsidiary India Infoline Investment Services (IIISL) aims to mobilise up to Rs 750 crore through private placement.The company will issue non-convertible debentures (NCD) with a face value of Rs 1,000 each, aggregating to Rs 375 crore, along with an option to retain over-subscription, or green-shoe option of up to Rs 375 crore, which, if exercised, will make the issue size Rs 750 crore.The funds would be utilised for financing IISL's core business of mortgage loans, capital market financing, gold loans and healthcare financing, India Infoline Chairman Nirmal Jain said here today."The demand for loans is there despite the rate increases. The mortgage demand and home-loan demand continue to be robust. Our established businesses like mortgages and loans against shares will grow in line with the market, may be by 15-20 per cent," he told reporters.The issue opens on August 4 and closes on August 12 and will have three maturities - 36, 40 and 60 months, with a coupon of 11.70 per cent for 36 and 40 months maturities and 11.90 per cent for the five-year instrument.The issue carries a 'AA- (stable)' rating by Icra and 'AA-' by CARE. The NCDs would be listed on the exchanges. The lead managers to the issue are Axis Bank, JM Financials and AK Capital Services.On the reason for a lower interest rate than Sriram Transport and L&T Finance's, JM Financial MD (Investment Banking) Sonia Dasgupta said, "listed instruments are trading at 10.9 per cent. The Fimda (Fixed Income Money Market and Derivative Association of India) recommends to add 25 bps to that interest rate, which comes to around 11.15 per cent. We are offering 11.90 and 11.7 per cent." PTI DS BEN RSY

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Disclaimer: Network18 Media & Investments Limited is proposing, subject to market conditions and other considerations, an offer of its equity shares on rights basis and has filed a Draft Letter of Offer with the Securities and Exchange Board of India. The Draft Letter of Offer is available on the website of SEBI at www.sebi.gov.in and the websites of the Lead Managers at www.icicisecurities.com and www.rbs.in Investors should note that investment in equity shares involves a high degree of risk and are requested to refer to "Risk Factors" in the Draft Letter of Offer. The Equity Shares have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), or any state securities laws in the United States and may not be offered or sold in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the US Securities Act) except in a transaction exempt from the registration requirements of the US Securities Act and in accordance with any applicable U.S. state securities laws.

Disclaimer: TV18 Broadcast Limited is proposing, subject to market conditions and other considerations, an offer of its equity shares on rights basis and has filed a Draft Letter of Offer with the Securities and Exchange Board of India. The Draft Letter of Offer is available on the website of SEBI at www.sebi.gov.in and the websites of the Lead Managers at www.icicisecurities.com and www.rbs.in Investors should note that investment in equity shares involves a high degree of risk and are requested to refer to "Risk Factors" in the Draft Letter of Offer. The Equity Shares have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), or any state securities laws in the United States and may not be offered or sold in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the US Securities Act) except in a transaction exempt from the registration requirements of the US Securities Act and in accordance with any applicable U.S. state securities laws.

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IIFL arm to raise Rs 750 cr from NCD issue

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