IIFL Samasta to raise up to Rs 1,000 cr via bonds, offers up to 10.50 pc return per annum

New Delhi: IIFL Samasta Finance on Friday said it plans to raise up to Rs 1,000 crore through its maiden public issue of non-convertible debentures (NCDs) for business growth and capital augmentation.

The non-banking microfinance companies (NBFC-MFI) will issue bonds, aggregating to Rs 200 crore, with a green shoe option to retain over-subscription of up to Rs 800 crore (aggregating to a total of Rs 1,000 crore).

The bonds, which open for subscription on Monday, propose to offer the highest coupon rate of 10.50 per cent per annum for the tenor of 60 months. NCD is available in tenors of 24 months, 36 months and 60 months. The frequency of interest payment is available on a monthly and annual basis for each of the series.

The company caters to the credit needs of underserved and unserved population, primarily women entrepreneurs from underprivileged backgrounds through a well-diversified portfolio through a network of 1,500 branches, IIFL Samasta Finance MD and CEO Venkatesh N said.

The public offer closes on December 15, 2023 with an option of early closure. The bonds would be issued at a face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories.

The funds raised will be used to meet credit demand from more such customers and bolster business growth, the company's treasury head Mohan Kumar said.

IIFL Samasta Finance offers innovative and affordable financial products to women who are enrolled as members and organised as Joint Liability Group from unbanked sections in society, including encompassing cultivators, agricultural labourers, vegetable and flower vendors, as well as household and industrial workers across rural, semi-urban and urban areas in India.