IIFL Finance Limited, a prominent player in the Indian financial services sector, has successfully raised ₹500 crore through the allotment of perpetual debentures. This strategic move, approved by the company's Finance Committee on September 30, 2025, marks a significant development in IIFL Finance's capital structure and funding strategy.

Debenture Details

The company has allotted 500 perpetual, unsecured, non-convertible debentures (NCDs) with a face value of ₹1 crore each. These debentures, classified as Series PDI-1 FY 2026, carry a coupon rate of 9.90% per annum. The NCDs will be listed on the National Stock Exchange of India Limited, enhancing their liquidity and tradability.

Key Features

• Perpetual Nature: These debentures have no fixed maturity date, providing IIFL Finance with long-term capital stability.
• Call Option: The company retains the right to exercise a call option after 10 years, subject to approval from the Reserve Bank of India (RBI).
• Interest Payments: Annual interest payments are scheduled to commence from September 30, 2026.
• Default Clause: In the event of a payment default, IIFL Finance will be obligated to pay an additional interest of 2.00% per annum over the coupon rate for the defaulting period.

Financial Implications

This issuance strengthens IIFL Finance's capital base, potentially improving its ability to expand its lending activities and meet regulatory capital requirements. The perpetual nature of these debentures aligns with the company's long-term financial planning strategy.

Market Context

The successful placement of these debentures at a 9.90% coupon rate reflects investor confidence in IIFL Finance's business model and financial health. It also indicates the company's ability to access capital markets effectively, even in a competitive financial landscape.

Regulatory Compliance

IIFL Finance has ensured compliance with the Securities and Exchange Board of India (SEBI) regulations, including timely intimation to the stock exchanges about this significant financial transaction.

This capital raise through perpetual debentures underscores IIFL Finance's proactive approach to capital management and its commitment to maintaining a robust financial position in the dynamic Indian financial services sector.

IIFL Finance Limited has announced the early closure of its public issue of Non-Convertible Debentures (NCDs), set to conclude on April 11, nearly two weeks ahead of the initially planned date. The decision, made by the Finance Committee of the Board of Directors, comes in response to the issue's performance since its opening on April 7.

Issue Details

The NCD issue aims to raise up to ₹500.00 crore, operating within a larger shelf limit of ₹2,500.00 crore. Key features of the NCDs include:

• Secured, rated, and listed status
• Redeemable nature
• Face value of ₹1,000.00 per debenture

Structure and Subscription

The issue is structured with a base size of ₹100.00 crore and includes a green shoe option of up to ₹400.00 crore, allowing for oversubscription. Interested investors can participate in the subscription process until 3:00 p.m. on the revised closing date of April 11.

Early Closure Implications

The decision to close the issue ahead of schedule may indicate strong investor interest, potentially allowing IIFL Finance to achieve its fundraising target earlier than anticipated. This move could be seen as a positive sign for the company's ability to attract capital in the current market environment.

Investor Considerations

Potential investors should note the revised timeline:

This change shortens the window for investment decisions, requiring interested parties to act promptly if they wish to participate in the NCD issue.

IIFL Finance's strategic decision to close the NCD issue early demonstrates the company's responsive approach to market dynamics and investor demand. As the financial landscape continues to evolve, such flexible fundraising strategies may become increasingly common among financial institutions seeking to optimize their capital-raising efforts.