IFCI, a Government of India company, issued redeemable non-convertible debentures of face value Rs 1000 each amounting to Rs 250 crore extendable to Rs 2000 crore. With tenures of 5, 7 and 10 years the bonds are open for four categories of investors: QIBs, corporates, HNIs and retail individual investors. For a period of 7 or 10 years the NCDs pay interest at 10 per cent for the retail and HNIs. They will also carry a cumulative option for all three tenures of 5,7 and 10 years. “This NCD is to attract retail investors. It will help them gain high return and multiple options of lock - in periods, which are not offered by banks,” said Malay Mukherjee, CEO and MD.
IFCI’s net worth has increased to Rs 5798 crore in 2014 from Rs 4324 crore in 2012. The capital adequacy ratio of the company is 20.84 per cent while the minimum RBI norm is 15 per cent. With equity shares listed in both BSE and NSE, the NCDs offer good liquidity.