Non-banking financial services firm ICL Fincorp announced the launch of its secured redeemable non-convertible debentures (NCDs), targeting investors with attractive interest rates. The NBFC will issue NCDs, aggregating to Rs 75 crore, with a green-shoe option to retain oversubscription up to Rs 75 crore, thus aggregating to a total of Rs 150 crore.
The NCD issue will be open for subscription from 5 April 2024 to 23 April 2024. Investors can participate with a minimum investment of Rs 10,000 (10 NCDs) in multiples of Rs 1,000 thereafter.
Investors can choose from 10 series ranging from 13 months to 68 months. Coupon for NCDs ranges from 11% to 12.50% per annum while effective yield (% per annum) ranges from 11.57% to 13.73%. ICL Fincorp's NCDs offer the flexibility of choosing monthly, annual, or cumulative interest payout options.
These are secured NCDs with a credit rating of ACUITE BBB- (stable outlook) by CRISIL Acuite Ratings and Research. The NCDs will also be listed on the Bombay Stock Exchange (BSE).
Funds raised through the NCD issue will be used for ICL Fincorp's onward lending and financing activities, repayment of existing borrowings, and general corporate purposes.
ICL Fincorp is a non-banking finance company specializing in gold loans across several Indian states. It operates in the states of Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, Odisha, Gujarat and Maharashtra. It also offers customers a range of property loans, business loans, new and pre-owned vehicle loans ("other loans") along with gold loans.