IIFL: Retail focused and technology driven Housing Finance Company, IIFL Home Finance Ltd (“IIFL HFL”) has filed a Tranche I prospectus with BSE Limited and National Stock Exchange of India Limited (“Stock Exchanges”) for a public issue of Unsecured Subordinated Redeemable non-convertible debentures (“Unsecured NCDs”) of the face value of Rs. 1,000 each.
IIFL: The Tranche I Issue includes a Base Issue Size for an amount of Rs. 100 crores (“Base Issue Size”) with a green shoe of up to Rs. 900 crore aggregating up to Rs. 1,000 crores (“Tranche I Issue”).
Objects of the NCD issue is for the purpose of onward lending, financing and for repayment/prepayment of interest and principal of existing borrowings of the company besides general corporate purposes.
IIFL HFL’s main focus has been to provide loans to the first time home buyers in the economically weaker section and lower income segments in the suburbs of tier 1, tier 2 and tier 3 cities. Salaried and Self Employed customers account for 44.37% and 55.63% of its Rs. 206,936.87 million AUM as of March 31, 2021, which has grown at a CAGR of 20.64% over the last 5 Fiscal Years. Company has served over 141,000 customers as of March 31, 2021. It’s home loan avg ticket size is approx. Rs.1.73 million.
Under the PMAY-CLSS scheme, IIFL Home Finance has helped empower over 43,000 customers with more than Rs.10 bn in subsidies as of March 31, 2021.
Lead Managers appointed to the issue are Edelweiss Financial Services Limited, IIFL Securities Limited*, ICICI Securities Limited, Trust Investment Advisors Private Limited and Equirus Capital Private Limited.
* IIFL Securities Limited is deemed to be our associate as per the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (Merchant Bankers Regulations). Further, in compliance with the provisions of Regulation 21A and explanation to Regulation 21A of the Merchant Bankers Regulations, IIFL Securities Limited would be involved only in marketing of the Issue.
Capitalised terms not defined herein shall have the same meaning as assigned to such terms in the Shelf Prospectus dated June 29, 2021 and Tranche I Prospectus dated June 29, 2021.
IIFL Home Finance Limited (“Company”), subject to market conditions, and other considerations, is proposing a public offer of secured redeemable non convertible debentures and / or unsecured subordinated redeemable non-convertible debentures and has filed a Shelf Prospectus dated June 29, 2021 (“Shelf Prospectus”) and Tranche I Prospectus dated June 29, 2021 (“Tranche I Prospectus”) with the Registrar of Companies, Maharashtra at Mumbai, BSE Limited (“BSE”), National Stock Exchange of India Limited (“NSE”) and Securities and Exchange Board of India (“SEBI”).
Investors proposing to participate in the Issue should note that investment in the NCDs involves a high degree of risk and for details in relation to the same, refer to the Shelf Prospectus and Tranche I Prospectus, including the section titled “Risk Factors” and “Material Developments” beginning on page 19 and 29 of the Shelf Prospectus and Tranche I Prospectus respectively.
About IIFL Home Finance:
Incorporated in 2006 and registered in 2009 with National Housing Bank (NHB), IIFL Home Finance Limited is a wholly-owned subsidiary of IIFL Finance Limited. The Company is one of India’s leading housing finance companies and is a preferred choice for affordable home loan requirements. Through their affordable home loans, IIFL Home Finance makes people’s aspirations of owning a home a reality.
As a technology driven housing finance player, we endeavour to make our customer experience as seamless as possible. We have made the entire life cycle of our housing loans i.e., from origination to closure, completely digitised. We have state-ofthe-art IT infrastructure which has helped in reducing costs, real time analysis of customer data, improving our control and underwriting functions, while increasing customer reach and distribution capability.
We have adopted and implemented a social objective across all aspects of our business in line with vision of ‘Complete Profitability’ and ESG framework with increased focus on sustainable growth.
We operate a financially inclusive customer centric lending business and believe that our business model contributes significantly to the EWS and LIG segment. As of March 31, 2021, 74.90% of our live accounts was from customers who belonged to the EWS and LIG segment. Through the provision of loans for purchase of homes to a customer segment that is not serviced by the mainstream financial services sector and our employment of personnel in rural and semi urban locations across India, we are fulfilling an important social
objective of economic upliftment for these segments of the Indian economy.
We offer customers a range of mortgage-related loan products, including (i) housing loans, for purchase of ready built residential units, under construction property by approved builders, self-construction, home improvement on pre-owned property and purchase of land for construction of residential property; (ii) secured business loans, for primarily meeting working capital requirement, business use and purchase of commercial property; and (iii) affordable housing project loans, to meet construction expenses of affordable housing projects of reputed developers.