High Yield | AA-/Watch Developing Rated | Minimum Investment: 10k Only

 

IIFL Samasta Finance Limited is issuing the Non-Convertible Debentures. These NCDs are “CRISIL AA-/Watch Developing & ACUITE AA | Rating Watch Negative Implications” rated. The NCDs are being issued in six series: coupon ranges from 9.2% to 10.5% p.a. and different tenures of 24 months, 36 months and 60 months. The NCDs are secured and redeemable in nature. 

IIFL Samasta Finance Limited NCD IPO: Coupon rates and effective yield for each of the series 

Allocation Ratio

The allocation ratio is prepared based on norms laid down by SEBI. Before announcing the allocation ratio, the same has to be approved by SEBI.  Once the IPO subscription closes, applications will be divided into different categories. The category-wise allocation ratio is always decided and declared during the launch of the particular IPO. Considering the Allocation Ratio, units will be assigned to applicants. Refer to the chart to know the application ratio for IIFL Samasta Finance Limited NCD-IPO. 

Investment Process for IIFL Samasta Finance Limited NCD IPO

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If the investment amount is  less than & up to 10 lakhs, retail investors can apply for an IPO online.

If the investment amount is more than 10 Lakhs. 

Financial Overview

Snapshot stating the Revenue, Expenses, Net Worth and PAT (In crores)

Cash flow for last few years (In crores)

Cash flow refers to the movement of cash in and out of the business at a specific point in time. It represents the net balance of the cash movement.

• • *Cash flow from operating activities reflects the amount a company generates through its product of services.
  • **Cash flow from investing activities reflects cash generated and spent relating to investing activities, like purchase of assets, sales of securities etc.
  • ***Cash flow from financing activities gives an insight into the financial stability of a company to its investors. It reflects the net flows of cash that are used to fund the company.

Ratio Analysis

Issue analysis

Pros 

• The NCD is AA- rated security with a developing outlook.
• The coupon rate is between 9.2% to 10.50% which is much higher than FDs.

Cons 

• Negative Cash Flow from operating activities

 

To get better returns than Bank FDs, invest in NCD-IPOs online. 

 

About IIFL Samasta Finance Limited 

IIFL Samasta Finance Limited is a leading non-banking financial company (NBFC) in India, providing a diverse range of financial products and services to individuals and businesses in underserved and unserved regions. Founded in 2008, the company has a strong presence in rural and semi-urban areas, catering to the needs of financially excluded communities.

IIFL Samasta Finance offers a variety of loan products, including microloans, microfinance, small business loans, mortgage loans, and agri loans. The company also provides other financial services, such as savings accounts, insurance, and wealth management.

Strengths

IIFL Samasta enjoys a significant advantage through the robust financial and managerial support of its parent company, IIFL Finance. This support goes beyond the everyday and extends to times of need, demonstrating a strong commitment.

Financial Backing Fuels Growth:

• Regular capital infusions, totaling Rs 940 crore since 2016, have enabled IIFL Samasta to expand its operations.
• Active involvement of senior IIFL Finance management in treasury management highlights the depth of support.

Solid Capitalization:

• Net worth has grown steadily, reaching Rs 2,010 crore as of March 2024, supported by continuous capital injections from IIFL Finance (Rs 400 crore in 2023 alone).

Improving Profitability:

• The company’s profit after tax (PAT) has seen a significant rise, reaching Rs 503 crore in FY2024, along with a climbing return on managed assets (RoMA) of 4.2%.
• This is a substantial improvement compared to FY2023 (PAT: Rs 128 crore, RoMA: 1.4%) and FY2022 (PAT: Rs 50.6 crore, RoMA: 0.8%).

Diversified Funding Sources:

• Since joining the IIFL Finance group, IIFL Samasta has successfully diversified its funding sources, reducing dependence on any single source.

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Source- Tranche II Prospectus May 24, 2024

Disclaimer- The information is published as on date 29/05/2024 based on information available on Tranche II Prospectus May 24, 2024. The information may be subject to change in case of change in terms of prospectus or any other reason as the case maybe. Contents which are exclusively for educational information/knowledge sharing on capital market concepts and has no influence the investment/sale decisions of any investors