Mumbai: India Infoline Finance (IIFL) on Wednesday said it expects its capital adequacy to grow up to 23 percent from the present level of 17.86 percent post its Rs 500-crore NCD issue.
The financial services firm, a unit of India Infoline, plans to raise Rs 500 crore through a public issue of un- secured redeemable non-convertible debentures (NCDs), which will open for subscription on September 5 and close on September 18.
"Our capital adequacy is at 17.86 percent, which is way above the industry average of 15 percent that has been made mandatory according to RBI guidelines. We expect it to inch up to 23 percent after raising funds through our NCD issue," IIFL Chairman Nirmal Jain told reporters here.
The issue comprises a base issue of un-secured redeemable NCDs with a face value of Rs 1,000 each aggregating up to Rs 250 crore with an option to retain over-subscription of similar amount, aggregating to a total of Rs 500 crore.
The NCDs, which has a `AA-(stable)' rating from both Crisil and Icra, will be in the nature of subordinated debt and will be eligible for tier-II capital, he said.
They will be listed on the BSE and NSE.
Lead managers to the issue are Axis Bank, SBI Capital Markets, Edelweiss Financial Services, Trust Investment Advisors and India Infoline, while co-lead managers are RR Investors.
PTI
