IIFL Finance shares jump 4% after board approves NCD issue worth Rs 150 cr

IIFL Finance share price today jumped up to 4.24 per cent at Rs 473 per share on the BSE in Thursday’s intraday trade. This came after the company’s board approved an non convertible debentures (NCDs) issue of Rs 150 crore. 

The securities being offered are unsecured redeemable NCDs–Series D26, with a private placement issuance type. 

The total number of NCDs is up to 150, which includes a green shoe option to retain oversubscription of up to 75 NCDs. The size of the issue is Rs 150 crores, consisting of 150 NCDs with a face value of Rs 1 crore each, featuring a base issue size of Rs 75 crores and a green shoe option to retain oversubscription up to Rs 75 crores. 

These debentures are proposed to be listed on the National Stock Exchange of India. The tenure of the instrument is 10 years, with the date of allotment set for October 16, 2024, and maturity on October 16, 2034. The coupon rate is 9.50% per annum.

In the event of a default, including any delays in the payment of interest/coupon or the redemption of principal on the due dates, the Company will pay an additional interest rate of 2 per cent per annum above the coupon rate. This additional interest will be applicable from the date the default occurs until the default is resolved to the satisfaction of the Debenture Trustee, acting on the instructions of the Debenture Holders. 

Regarding the redemption of the debentures, the amount will be Rs 1 crore per debenture at maturity, which is set for October 16, 2034, along with any accrued interest, if applicable, the company said in an exchange filing on Thursday. 

Share price history

IIFL Finance’s share price has underperformed the market as it plummeted 20.8 per cent year to date, while shedding 24.6 per cent in the last one year. In comparison BSE Sensex has risen 13 per cent year to date and 23.6 per cent in a year. 

The company has a total market capitalization of Rs 19,667.87crore. Its shares are trading at price to earnings valuation of 46.87  times with an earning per share of Rs 9.68. 

At 1:08 PM, the stock price of the company advanced by 2.17 per cent at Rs 463.60 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.28 per cent to 81,696.68 level.