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

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

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.

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

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.