India Infoline IPO - Should you go for it?

Neha Sharma 1100 View 3 Comments FAQ

But the IPO is wholesome!

You might want to sit down for this one. Too good if you already are. The eternal adage of eating healthy food and getting enough sleep just got added with another point: Don’t miss the wholesome investments opportunities. IIFL Home Finance Ltd is all set to open the gates for investors for IPO bidding on the 6th of July this year.
The social unit, which is among the top seven finance conglomerates of India, will offer a breezy online IPO process through its trading website , based on the UPI payment gateway. If that wasn’t enough, IPO has been rated AA+ by the BWR (independent credit rating agency) and come with a 10% percent annual interest and tenure of 87 months. All you need to do is feed in your basic details, Bank account and demat details, the number of shares you need and place your bid.

About the Issue

Issuer IIFL Home Finance Ltd
Type of instrument Unsecured Subordinate Redeemable NCD
Listing Bombay Stock Exchange Limited and National Stock Exchange of India Limited
Issue Size Base Issue of Rs. 100 Crore with an option to retain oversubscription up to Rs. 900 Crore aggregating to Rs. 1000 Crore
Issue Price Rs. 1000 per NCD
Face Value Rs. 1000 per NCD
Minimum Investment Rs. 10,000
Issue Closing Date July 28, 2021 (*with an option of early closure)
Issue Opening Date July 06, 2021
Issue Closing Date July 28, 2021 (*with an option of early closure)
Mode of Application UPI and ABSA
Mode of Issuance Dematerialized only
Allotment and allotment ratio First come , first serve basis only
QIB 10% , Corporate 10% , HNI 40% and Retail 40% of the overall Issue Size

About the Company

  • IIFL Home Finance Limited, a company incorporated under the Companies Act, 1956 (CIN:U65993MH2006PLC166475) and registered as a Housing Finance Company with the National Housing Bank vide Certificate of Registration (COR) No. 09.0175.18 dated September 25, 2018

  • The Company is a subsidiary of IIFL Finance Limited which is a NBFC registered with the Reserve Bank of India (RBI)

  • Widespread Network: 125+ Branches Across India, 2000+ Employees

  • Products: Affordable Home Loan. Non-Metro Housing Loan, Home Purchase, Home Renovation, Home Construction and Plot Purchase

IIFL Home Loans’ Financial Performance

india-infoline-home-loans-fFinancial-performance

Key Strengths

  • Diversified Business Profile

    A retail-focused NBFC with diversified products such as home loans, gold loans, microfinance loans (MFI), MSME business loans, LAP and construction finance.
  • Diversified Resource Mix

    IIFL Finance has a diversified resource profile and has demonstrated its ability to raise funds through various sources. One of the key sources to raise funds are from assignment and securitisation constituting around 40% of the funding requirement.
  • Experienced Management and strong ownership

    IIFL Finance Group is led by a qualified and experienced management team who possess strong experience in the financial services domain. The board of Directors are Mr. Nirmal Jain (the founder of IIFL Group and chairman of IIFL Finance Limited), Mr. R. Venkataraman (co-promoter and managing director of IIFL Finance Limited) and other independent directors. The parent company , IIFL Finance , is a listed company with strong shareholder background.

Credit Risks

  • Impact on asset quality due to Covid-19

    Asset Credit Quality has been under pressure due the global pandemic in FY20 and FY21. There has been a increase in gross NPA from 1.96% in March 19 to 2.31% in March 20. The loan moratorium had also temporarily bought about a dip in collections
  • Limited loan seasoning

    IIFLs AUM has shown a steady growth from Rs 22281 cr in March 17 to Rs 42264 cr in Dec 20 . However the product mix is highly skewed towards Home Loan and Loan Against Property (LAP), exhibiting limited seasoning, which constitute around 45% of the total AUM .

Why choose Bonds India?

Bonds India is an online platform for fixed-income securities such as IPOs, bonds, 54EC bonds, and fixed deposits. . With a cumulative pedigree of 50+ years in the bond market, we aim to democratize the market for common investors by stationing detailed insights, expert advice, and keeping a close watch on the market sentiment. Bonds India brings up-to-date information when IPOs go live, fixed deposits with higher interests, and bonds with competitive price before anyone else.7

Bonds India ditches the traditional ways of investing by offering a blockchain-based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose Bonds India for its sleek interface, fail-safe communication and step-by-step guide to ensure a well-placed bid. You can apply for India Infoline IPO on BondsIndia’s website.

Place you bid in three simple steps

Key in Basic Details > Choose the IPO Series > Place the bid

How to invest in the IPO

Application process on Bonds India platform is simple and seamless.
  • Click on the details of the company on the home page

  • Fill in the Application form with the basic details such as Name, email address, mobile number, Pan details, bank and Demat details)

  • Then, confirm the quantity and price and select payment method.

  • That’s all folks , bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with Bonds India.
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The IPO I have been waiting for. Thank you for reminding me of the IPO going live. I will keep an eye.
The introduction to the company really does a great job of sharing important details of the company and its financial health. Looking forward to the IPO though.
Investor appetite will surely be pushed with this IPO. Given the times and the volatility of the market, this IPO might bring be some consolation to an investor.
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