IIFL Home Finance Aims To Raise Up To Rs 1,000 Crore
IIFL Home Finance plans to raise up to Rs 1,000 crore by issuing bonds in December as the lender embarks on aggressive footprint expansion into smaller towns. This will be the second bond sale for the lender this fiscal. In July, it had garnered Rs 655 crore by issuing unsecured bonds. This time, the lender is looking to issue secured bonds to lower the cost at around 8-9%, significantly lower than its offerings of 9.6-10% in July. The Company is contemplating issuing bonds with five- and seven-year maturities, unlike in the previous occasion when it offered investors only a seven-year option. "This is a good time to grow. We see significant growth opportunities in tier 3- tier 4 markets," IIFL Home Finance, Chief Executive, Monu Ratra. The lender to the low- and middle-income customers had its AUM at Rs 21,474 crore at the end of September. Home loans contribute almost three-fourth of it with loans against property (LAP) to small enterprises and construction finance being other lending verticals. It plans 100 more offices in tier 3 and tier 4 locations by the end of this financial year. It has about 145 offices at present. In sync with the expansion strategy, the company is also looking to hire 300-400 people in the next six months to raise the manpower to about 2,400 by March 2022 from about 2000 at the end of September. The lender earned Rs 284 crore in net profit for the April-September period as against Rs 405 crore for the entire FY21. Its asset quality worsened a bit with the gross non-performing assets ratio rising to 2.07% at the end of September from 1.7% six months ago.
Tags : ALLIED Home Loans Investors IIFL construction finance Expansion Home Finance Loans Against Property Unsecured Bonds