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.

ibl finance has allotted 38 unlisted, secured, redeemable Non-Convertible Debentures (NCDs) aggregating ₹38 lakh on a private placement basis. The NCDs carry a fixed coupon rate of 13% per annum, with interest payable monthly. The allotment was approved by the Finance Committee at its meeting held on May 23, 2026.

The instruments have a face value of ₹1,00,000 each and are secured by a charge on the company's receivables and book debts. The security coverage is maintained at a minimum of 1.05 times the loan amount. The NCDs are unrated and taxable, with a tenure of 748 days maturing on June 09, 2028.

Key Terms of Allotment

The table below outlines the specific details of the NCD issuance:

The Board of Directors had initially approved the issuance of NCDs on July 16, 2025, which was subsequently ratified by shareholders through a special resolution at the Annual General Meeting on August 22, 2025. The intimation was submitted to the National Stock Exchange of India Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Default Provisions

The filing outlines specific penalties for delays in payment. In the event of a default in coupon payment or principal redemption, the company will pay additional interest of at least 1% per annum over the coupon rate for the defaulting period. Furthermore, if the company fails to execute the trust deed within the period specified in the Companies Act, it will pay interest of at least 1% per annum to the debenture holders until the deed is executed.