IIFL Home Finance plans to raise up to Rs 5,000 crore, to boost its lending business, through public issue of non-convertible debentures.
The company has filed a draft shelf prospectus with stock exchanges BSE and NSE for this public issue of bonds, IIFL Home Finance said on Monday.
The company will issue secured redeemable and/or unsecured subordinated redeemable non-convertible debentures (NCDs) for an amount aggregating up to Rs 5,000 crore, it said.
The face value of each secured and unsecured NCD will be Rs 1,000 each and will be issued in one or more tranches.
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 Home Finance said.
As on March 31, 2021, the company's CRAR tier 1 capital was 19.61 per cent, it said.
Credit rating for the proposed NCDs is CRISIL AA/Stable by Crisil Ratings Ltd and BWR AA+/Negative (Assigned) by Brickwork Ratings India Pvt Ltd.
The company's main focus is 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.
The company said over 85 per cent of its housing loans have been sourced digitally in the last financial year 2021.
Under the PMAY-CLSS scheme, IIFL Home Finance has helped empower over 43,000 customers with more than Rs 10 billion (Rs 1,000 crore) in subsidies as of March 31, 2021, it said.
Edelweiss Financial Services Ltd, IIFL Securities Ltd, ICICI Securities Ltd, Trust Investment Advisors Pvt Ltd and Equirus Capital Pvt Ltd are the lead managers of this issue.