IIFL Home Finance, a 100% subsidiary of IIFL finance, is a leading technology driven housing finance company which provides loans to low and middle income group across the country. Despite the challenges, it continues to report improving business performance over the last few years with AUM increasing to Rs. 21,474 crore in half year ending on September 30th, 2021, from Rs. 18,158 crore in FY19. It has increased its share of home loans in the overall mix to 73% and reduced its average home loan ticket size to Rs.17 Lacs. IIFL Home Finance Ltd. has a completely digitized home loan onboarding process which has increased its productivity. It has achieved 99% digital onboarding for home loans.
According to CRISIL research, the home loans outstanding for HFC/NBFC is estimated at Rs 7,630 bn for FY 21 and is projected at Rs 9,150 for FY 23. The industry is further supported by CLSS subsidy offered by the government of India under “Pradhan Mantri Awaas Yojana” till March 2022.
IIFL Home Finance has reported an improved financial performance with a PAT of Rs 284 cr, ROE of 25.3% and ROA of 3.5% for H1 FY22. With consistent efforts and increasing productivity, the cost to income ratio has decreased to 21.1% in H1 FY22 from 36.9% in FY19.
It has operational synergies with its established parent IIFL Finance, which is part of the IIFL group. IIFL group has over 2 decades of experience in the financial service industry. IIFL Finance has backing of investors like Fairfax and CDC along with presence across the country through its 2,900+ locations.
After the strong response to its first issue, IIFL Home Finance is opening a new issue for secured redeemable non-convertible debentures. It offers coupon of 8.20% to 8.75% p.a. for tenor of 36 / 60 / 84 months with various interest payment options like monthly, annual and cumulative. Additional incentive is offered to existing equity investors of IIFL Finance and NCD holders of IIFL Finance / IIFL Home Finance. The NCD will be listed on the stock exchanges. For more details, please refer to the tranche II prospectus dated December 3rd, 2021 on SEBI website and on company website. To apply for the IIFL Home Finance Ltd. Secured Redeemable NCDs, one can apply here.
FULL DISCLAIMER: IIFL Home Finance Limited (Formerly known as India Infoline Housing Finance Limited), subject to market conditions and other considerations is proposing a public issue of secured, redeemable non-convertible debentures and has filed the Tranche II Prospectus dated December 3, 2021 with the Registrar of Companies, Maharashtra at Mumbai, National Stock Exchange of India Limited, BSE Limited and SEBI. The Tranche II Prospectus dated December 3, 2021 is available on our website www.iifl.com/home-loans, on the website of the stock exchanges at www.nseindia.com and www.bseindia.com, on the website of SEBI at www.sebi.gov.in and the respective websites of the lead managers at www.edelweissfin.com, www.iiflcap.com, www.icicisecurities.com, www.trustgroup.in and www.equirus.com. Investors proposing to participate in the Issue, should invest only on the basis of the information contained in the Tranche II Prospectus dated December 3, 2021. Investors should note that investment in NCDs involves a high degree of risks and for details relating to the same, please refer to Shelf Prospectus dated June 29, 2021 and the Tranche II Prospectus dated December 3, 2021, including the section on “Risk Factors” beginning on page 34 of the Tranche II Prospectus dated December 3, 2021.