Get 12.25% p.a. on Secured NCDs from India Infoline

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

an opportunity to invest in the Secured Redeemable Non-Convertible Debentures (NCDs) issued byIndia Infoline Investment Services Limited (IIFL Group). These bonds have been assigned a rating of “CARE AA- by CARE &LAA-/stable by ICRA”. These NCDs offer a Coupon Rate of 11.90% p.a. and which are currently available at a discounted price (Rs. 99 against each Rs. 100) through us where Current Yield works out to 12.23% p.a. which looks very attractive with Secured in nature. Kindly find more information below :

Issue Highlights:

Details	Particulars
Instrument	Secured Redeemable NCDs
Rating	LAA- by ICRA & CARE AA- by CARE
Face Value / NCD	Rs.1000 only
Currently Available Price / NCD	Rs. 900 only
Minimum Investment	100 Debenture
Coupon/Interest Rate p.a.	11.90% p.a
Current Yield p.a.	12.23% p.a.
Interest Payment Date & Frequency	1st April (Annual)
Allotment Date	18th August 26, 2011
Maturity Date	18th August 26, 2016
Tenure	60 Months
Issuance/Trading	Demat mode only
Listing	NSE & BSE

Company Overview:

India Infoline Investment Services Ltd is wholly owned NBFC (Non Banking Financial Company) of India Infoline.

IIFL owns 76.74% in this NBFC, and while India Infoline Investment Services (the NBFC) source a lot of their clients and draw on the goodwill of the parent company, this is a different company from the parent. The remaining stock is also owned by another IIFL subsidiary called India Infoline Marketing Services.

As a NBFC, their primary business is lending, and their total income for the fiscal 2011 was Rs. 4,697.76 million and profit after tax was Rs. 922.48 million, which is a pretty decent profit margin of 19.2%. 99% of the loans are secured, and they have a CAR (Capital Adequacy Ratio) of 29.95%.

Their primary business is lending in these 4 segments:

1. Mortgage loans: Housing loans and loans against property. This forms 60% of their loan book.
2. Capital Market Finance: Loans against shares, promoter funding, margin funding IPO financing etc. and this forms 35% of their loan book.
3. Gold loans: Loans given against gold jewelery. This is about 4% of their business.
4. Healthcare Finance: This is a new segment, and it looks like it doesn’t contribute a lot to their business currently.