IBL Finance has allotted 50 unlisted, secured, redeemable Non-Convertible Debentures (NCDs) aggregating ₹50 lakh on a private placement basis to raise funds. The NCDs carry a fixed coupon rate of 13% per annum, payable monthly, and are secured by hypothecation of receivables. The instrument matures on October 9, 2028, which is 850 days from the date of allotment.

The Finance Committee of IBL Finance approved the allotment on June 12, 2026. This decision follows the Board of Directors' approval on July 16, 2025, and a subsequent special resolution passed by shareholders at the Annual General Meeting on August 22, 2025. The debentures have a face value and issue price of ₹1,00,000 each.

The NCDs are unrated and taxable. Security for the issue includes a charge over standard loan assets with minimum coverage of 1.05 times the loan amount. In the event of a default in coupon or principal payment, the company will pay additional interest of at least 1% per annum over the coupon rate for the defaulting period.

Provisions for delays in executing the trust deed also stipulate an interest penalty of at least 1% per annum until the deed is executed. The disclosure was made to the National Stock Exchange of India Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Allotment

IBL Finance Limited's board has approved proposals to raise up to ₹350 crore through the issuance of non-convertible debentures (NCDs), subject to shareholder approval. The decision, taken during a meeting on June 6, 2026, includes plans for both private placement and public issues to bolster the company's capital base. The move aims to enhance financial flexibility by increasing borrowing capacities and securing funds against assets.

The board approved increasing the borrowing limits from ₹500 crore to ₹600 crore under Section 180(1)(c) of the Companies Act, 2013. Concurrently, the limit for creating charges on movable and immovable properties was raised from ₹500 crore to ₹600 crore under Section 180(1)(a) of the Act. Both adjustments require the approval of the shareholders.

Fundraising Proposals

The directors sanctioned two primary avenues for debt fundraising. The first involves issuing listed or unlisted, secured or unsecured, redeemable NCDs through private placement for an amount up to ₹150 crore. The second proposal entails issuing secured, rated, listed, redeemable NCDs via a public issue for up to ₹200 crore in multiple tranches.

Key Details of NCD Issuance

Governance and Appointments

To facilitate the proposed public issue, the board approved the appointment of various intermediaries. These include lead managers, debenture trustees, registrars to the issue, legal counsel, credit rating agencies, and bankers to the issue. Additionally, the board enhanced the powers and authorities delegated to the Finance Committee and amended its Terms of Reference.

The proposals are in line with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company confirmed there are no delays in payments of interest or principal, nor any pending letters or comments from regulatory authorities regarding payment defaults.