IIFL Finance to Raise Up to ₹500 Crore via Public Issue of Non-Convertible Debentures

2 min read   |   Updated on 04 Apr 2025, 02:28 PM
scanxBy ScanX News Team
whatsapptwittershare
Overview

IIFL Finance plans to raise up to ₹500 crore through a public issue of secured, rated, listed, redeemable non-convertible debentures (NCDs). The base issue is ₹100 crore with a green shoe option of ₹400 crore. The NCDs will open on April 7, 2025, and close on April 23, 2025, offering tenures from 15 to 60 months with a maximum yield of 10.25% per annum. Funds will be used for onward lending, refinancing existing debt, and general corporate purposes. IIFL Finance, an NBFC-ML, reported a consolidated AUM of ₹71,410.19 crore as of December 31, 2024, with a GNPA of 2.42% and NNPA of 1.01%.

5302720

*this image is generated using AI for illustrative purposes only.

IIFL Finance , a prominent non-banking financial company (NBFC), has announced plans to raise up to ₹500 crore through a public issue of secured, rated, listed, redeemable non-convertible debentures (NCDs). This move signifies the company's strategy to secure additional funding for various purposes, including onward lending and refinancing existing debt.

Key Details of the NCD Issue

Detail Value
Issue Size Base issue of ₹100 crore with a green shoe option to retain oversubscription up to ₹400 crore
Opening Date April 7, 2025
Closing Date April 23, 2025 (with an option of early closure)
Ratings 'CRISIL AA/Stable' by CRISIL Ratings Limited and '[ICRA] AA (Stable)' by ICRA Limited
Tenure Options 15 months, 24 months, 36 months, and 60 months
Interest Payment Monthly, annual, and cumulative options available
Maximum Yield Up to 10.25% per annum for the 60-month tenure (Series IX)

Utilization of Funds

The funds raised through this NCD issue will be used for:

  1. Onward lending
  2. Financing and refinancing the existing indebtedness of the company
  3. Debt servicing (payment of interest and/or repayment/prepayment of existing borrowings)
  4. General corporate purposes

Company Profile

IIFL Finance is registered as an NBFC-Middle Layer (NBFC-ML) with the Reserve Bank of India. The company, along with its subsidiaries, offers a diverse range of financial products, including:

  • Home loans
  • Gold loans
  • MSME secured and unsecured loans
  • Personal loans
  • Supply chain finance
  • Microfinance
  • Construction and real estate finance
  • Capital market finance

As of December 31, 2024, IIFL Finance boasts a widespread network of 4,858 branches across India and a strong workforce of 38,235 employees. The company's consolidated Assets under Management stood at ₹71,410.19 crore as of the same date.

Financial Performance

IIFL Finance reported a Gross Non-Performing Asset (GNPA) of 2.42% and a Net Non-Performing Asset (NNPA) of 1.01% as a percentage of its consolidated loan book as of December 31, 2024. Notably, 71.92% of the company's consolidated loan book is secured with adequate collaterals, which helps mitigate risks.

Investment Details

Detail Value
Minimum application size ₹10,000 across all categories
Face value of NCDs ₹1,000 each
Listing BSE Limited and National Stock Exchange of India Limited
Lead managers Trust Investment Advisors Private Limited, Nuvama Wealth Management Limited, and IIFL Capital Services Limited

Investors interested in this NCD issue should note that the allotment will be made on a first-come, first-served basis. The company has the right to close the issue earlier or extend it, subject to the relevant approvals and regulations.

This public issue of NCDs by IIFL Finance presents an opportunity for investors to participate in the growth story of one of India's leading NBFCs while potentially earning attractive returns. However, as with all investments, interested parties are advised to carefully review the offer documents and consider their risk appetite before making an investment decision.

Historical Stock Returns for IIFL Finance

1 Day5 Days1 Month6 Months1 Year5 Years
+0.39%+3.29%+8.77%-27.30%-17.96%+302.89%

IIFL Finance Boosts NCD Issue Size to ₹700 Crore, Enhancing Capital Raising Efforts

2 min read   |   Updated on 13 Mar 2025, 01:35 PM
scanxBy ScanX News Team
whatsapptwittershare
Overview

IIFL Finance Limited has increased its Non-Convertible Debentures (NCDs) issuance plan to up to 70,000 NCDs, with a potential total value of ₹700 crore. This includes a base issue of ₹425 crore and a green shoe option of up to ₹275 crore. The NCDs are secured, listed, rated, and redeemable, with a face value of ₹1,00,000 per NCD. They will be listed on the National Stock Exchange of India Limited. The company has included investor safeguards such as additional interest for payment defaults and an event of default clause.

3398766

*this image is generated using AI for illustrative purposes only.

IIFL Finance Limited , a prominent player in the Indian financial services sector, has announced a significant expansion of its Non-Convertible Debentures (NCDs) issuance plan, demonstrating a robust approach to capital raising in the current market environment.

Enhanced Issue Size

The company has revealed plans to issue up to 70,000 NCDs, which includes a green shoe option. This marks a substantial increase from the initial announcement. The Finance Committee of the Board of Directors, in a meeting held on March 13, 2025, approved the enhancement of the issue size for the re-issuance of previously issued NCDs on a private placement basis.

Key Details of the NCD Issuance

Aspect Details
Type of Securities Secured, Listed, Rated, Redeemable Non-Convertible Debentures - Series D29 Option C
Issue Size Up to ₹700 crore (₹7,00,00,00,000)
Base Issue ₹425 crore
Green Shoe Option Up to ₹275 crore
Face Value ₹1,00,000 per NCD
Listing To be listed on the National Stock Exchange of India Limited

Strategic Implications

This move by IIFL Finance indicates a strategic effort to secure additional funding, potentially for expansion or refinancing purposes. The significant increase in the issue size, from the base issue of ₹425 crore to a potential total of ₹700 crore, suggests strong confidence in market demand for their debt instruments.

Investor Safeguards

IIFL Finance has outlined several investor-friendly measures in its LODR filing:

  1. Default Protection: In case of any payment default, the company will pay an additional interest of 2% per annum over the applicable Coupon Rate on the defaulted amounts.
  2. Event of Default Clause: The same additional interest applies to the Principal Amount outstanding in case of any non-payment related Event of Default.
  3. Listing Assurance: The NCDs are proposed to be listed on the National Stock Exchange, ensuring liquidity for investors.

Conclusion

IIFL Finance's enhanced NCD issuance represents a significant move in the company's capital management strategy. By increasing the potential issue size to ₹700 crore, the company is positioning itself to capitalize on favorable market conditions and investor appetite for secured, rated debt instruments. This development is likely to be closely watched by both investors and industry observers as an indicator of the health of the corporate debt market in India.

Investors and stakeholders are advised to refer to the detailed terms and conditions set out in the relevant Key Information Document for complete information on coupon rates, payment schedules, and security details.

Historical Stock Returns for IIFL Finance

1 Day5 Days1 Month6 Months1 Year5 Years
+0.39%+3.29%+8.77%-27.30%-17.96%+302.89%
More News on IIFL Finance
Explore Other Articles
ICICI Bank Reports Strong Q4 Results, Announces Stake Sale in NIIT-IFBI10 hours ago
Oberoi Realty Soars: FY25 Bookings Surge 31% to ₹5,266.00 Crore12 hours ago
NIIT to Fully Acquire IFBI, Strengthening its Position in BFSI Training10 hours ago
Sky Gold & Diamonds Expands Portfolio with Strategic Acquisition of Ganna N Gold10 hours ago
Asian Energy Services Expands Global Footprint with $9.25 Million Acquisition of Kuiper Group13 hours ago
IRIS Business Services Secures Role in Qatar Central Bank's Regulatory Tech Project13 hours ago
334.40
+1.30
(+0.39%)