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Indian Infoline Group to raise Rs 1,500 crore via NCDs, eyes Rs 1 lakh-crore AUM

| September 15 2014 14 : 00 IST | India Infoline News Service
In fact domestic mutual funds for the first time in the last one year have invested more than FIIs in August this year. The domestic funds have deployed nearly $1.14 billion (nearly Rs 6,900 crore) in August this year compared to $1.05 billion (nearly Rs 6,300 crore) invested by the FIIs.
Nirmal Jain promoted Indian Infoline Group (IIFL) that manages wealth of over 10,000 HNIs sees its assets under management (AUM) to grow over Rs 1,00,000 crore in next couple of years. Thanks to the improved market and investor sentiments, IIFL is now decided to focus more on its wealth advisory business. 

"The economy is recovering, the crude oil prices are falling, and the monsoons have not been as bad as anticipated. There is no reason that I see in markets not crossing 75,000 points in the next five years. I see a 15-20% growth in our wealth management business in the next few years. Already, we manage Rs 68,000 crore of wealth of HNIs," Nirmal Jain, chairman, IIFL told ToI. 

In fact domestic mutual funds for the first time in the last one year have invested more than FIIs in August this year. The domestic funds have deployed nearly $1.14 billion (nearly Rs 6,900 crore) in August this year compared to $1.05 billion (nearly Rs 6,300 crore) invested by the FIIs. 

IIFL is planning to raise Rs 1500 crore by way of non convertible debentures (NCDs) to fund the expansion of its non-banking financial company (NBFC) business. "We recently raised Rs 200 crore and planning to raise another Rs 1500 crore through NCDs. The funds are expected to be raised at coupon rate of 10.5% for five year term," said Jain. 

IIFL NBFC loan portfolio stands at Rs 12,500 crore of which home loan and loan against property contributes 48%, followed by gold loan at 32% and remaining 10% each is divided between consumer finance and loan against share. 

"We see a 15-20% growth in our NBFC business and see our alternate investment fund growing fivefold to Rs 10,000 crore from Rs 2,000 crore now," said Jain. 

IIFL launched its National Development Agenda fund after the BJP-led government came to power assuring investors returns of 12% per annum for the next three years. 

Last month, IILF Holdings received SEBI's registration to undertake investment advisory services. Shares of IILF Holdings closed up 1.7% at Rs 145 in a weak Mumbai market on Wednesday, valuing the firm at Rs 4364 crore.

Source: 
Times of India

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