One of the leading NBFC-MFI with Rs 12200 crore of assets under management, IIFL Samasta plans to use the proceeds to fund its growth and capital augmentation. The company has grown at a CAGR of 68% in the last five years and aims to grow in the 25%-30% range over the next three years.The issue opens on December 4 and will be in the market till December 15.
“We have decided to sell public bonds to mobilise growth capital and diversify our borrowing profile,” CEO Venkatesh N told ET. “We are also preparing grounds for raising Rs 750-1000 crore in external commercial borrowing later next year.”
IIFL Finance, which holds 99% in the microfinance lender, has decided to infuse Rs 200 crore by way of rights issue of 7.5 crore fully paid up equity shares of face value of Rs 10 each at a premium of Rs 16.74 per share. It acquired Samasta in 2017.
In the first half of FY24, the NBFC-MFI raised Rs 5,239 crore of debt with about 60% as term loans and another 20% from privately placed bonds. The balance is raised through direct assignment of loans and a very small amount through selling commercial papers.
In the second half, the company plans to borrow about Rs 6000 crore. It has undrawn sanctions of 1,250 crore.
For the proposed public issue, the Bengaluru-headquartered company will sell secured redeemable non-convertible debentures (NCDs) for a base component of Rs 200 crore while it will have a right to retain oversubscription up to Rs 800 crore. The bonds are rated “AA-/Positive” by Crisil Ratings and “AA/Stable” by Acuite Ratings which shows high degree of safety.
The bonds will offer 10.50% for a 60-month tenure. For 24 months and 36 months’ maturity, the rates are kept at 9.60% and 10% respectively.
The NBFC-MFI earned Rs 233 crore in the first half of FY23. Its gross non-performing assets was at 2.1% at the end of September.
Starting operations in 2008 in Tamil Nadu, it has grown to 1,485 branches spanning across 22 states with major focus on Bihar, Karnataka, Rajasthan, Tamil Nadu, and West Bengal.