IIFL Finance subsidiary raises Rs 216 crore through public bond issue
IIFL Finance's microfinance subsidiary IIFL Samasta Finance has garnered Rs 216 crore through its second public bond issue against a Rs 1,000-crore target despite higher interest rates, as investors were likely concerned over the regulatory scrutiny on IIFL Finance's gold loan business.
IIFL Samasta Finance is 100% owned by IIFL Finance.
The fund mobilisation, although crossed the base size of Rs 200 crore, was muted when compared to the lender's maiden issue in November last year when it had raised Rs 607 crore. The issue comprised an option to retain oversubscription up to Rs 800 crore.
Industry sources said that the bond issue of the microfinance lender received «subdued» response following Reserve Bank of India's «supervisory concerns over the parent IIFL Finance's gold loan portfolio.
IIFL Samasta did not respond to query from ET.
RBI in March instructed the company to stop sanctioning or disbursing fresh gold loans or assigning, securitising, or selling any of its gold loans. The regulator also conducted a special audit on the company.
»The special audit has been completed, and we now await the RBI’s review and expect positive action soon," IIFL Finance founder Nirmal Jain said Sunday after announcing a 10% year-on-year fall in fourth quarter net profit.
IIFL Samasta, registered as a non-banking finance company-microfinance institution (NBFC-MFI), offered interest rates between 9.2% and 10.5% a year for different maturities. The issue hit the market on June 3 and was closed on June 14. The company said
