IBL Finance Allots 55 NCDs Worth Rs. 55,00,000 on Private Placement Basis
IBL Finance Limited's Finance Committee allotted 55 Unlisted, Senior, Secured, Unrated, Taxable, Redeemable NCDs on 13 May 2026 at a face value of Rs. 1,00,000 each, aggregating Rs. 55,00,000, on a private placement basis. The NCDs carry a fixed coupon rate of 13.00% per annum payable at maturity and are secured by hypothecation of receivables with a minimum security coverage of 1.05 times, maturing on 11 January 2028.
*this image is generated using AI for illustrative purposes only.
IBL Finance Limited's Finance Committee, at its meeting held on 13 May 2026, approved the allotment of 55 (Fifty Five Only) Unlisted, Senior, Secured, Unrated, Taxable, Redeemable Non-Convertible Debentures (NCDs) on a private placement basis to an identified eligible investor. Each NCD carries a face value of Rs. 1,00,000 and was issued at the same price, bringing the total issue size to Rs. 55,00,000 (Rupees Fifty Five Lacs Only). The allotment was made in furtherance of an intimation letter dated 16 July 2025 and is disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Regulatory and Corporate Approvals
The issuance of these NCDs was first approved by the Board of Directors at its meeting held on 16 July 2025. The proposal was subsequently ratified through a Special Resolution passed by shareholders at the company's Annual General Meeting held on 22 August 2025. The disclosure has been made pursuant to SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.
Key Terms of the NCD Issuance
The following table outlines the key terms and conditions of the allotted NCDs:
| Parameter: | Details |
|---|---|
| Type of Securities: | Unlisted, Senior, Secured, Unrated, Taxable, Redeemable NCDs |
| Mode of Issuance: | Private Placement to identified eligible investor |
| Number of NCDs Allotted: | 55 (Fifty Five Only) |
| Face Value per NCD: | Rs. 1,00,000 |
| Issue Price per NCD: | Rs. 1,00,000 |
| Total Issue Size: | Rs. 55,00,000 |
| Date of Allotment: | 13 May 2026 |
| Date of Maturity: | 11 January 2028 (608 days from allotment) |
| Coupon Type: | Fixed |
| Coupon Rate: | 13.00% per annum |
| Coupon Payment Frequency: | At Maturity |
| Proposed Listing: | No |
| Redemption: | Redeemable on maturity |
Security and Charge Details
The NCDs are secured by a charge created by way of hypothecation of receivables and book debts of the company. The security comprises standard loan assets with a minimum security coverage of 1.05 times of the loan amount, providing a defined level of collateral backing to the debenture holders.
Default and Penalty Provisions
The terms of the NCD issuance include specific provisions in the event of a default:
- In case of default in payment of coupon and/or redemption of the principal amount on the respective due dates, an additional interest of at least 1% (One Percent) per annum over and above the coupon rate shall be payable for the defaulting period until the defaulted amount along with the delay penalty is fully paid.
- Where the company fails to execute the trust deed within the period specified under the Companies Act, an additional interest of at least 1% (One Percent) per annum, or such other rate as specified by the regulatory authority, shall be payable to the debenture holders over and above the coupon rate until the execution of the trust deed.
The intimation was signed by Dilip Chauhan, Company Secretary and Compliance Officer (ICSI Membership No. A63390), from Surat, on 13 May 2026.
Historical Stock Returns for IBL Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -2.46% | -7.18% | -17.37% | -5.96% | -2.13% |
How might IBL Finance's 13% coupon rate on these NCDs compare to its future borrowing costs if interest rates shift significantly before the January 2028 maturity?
Given the relatively small issue size of Rs. 55 lakhs, could IBL Finance be planning additional NCD tranches or larger fundraising rounds to scale its lending operations?
With a minimum security coverage of only 1.05x on hypothecated receivables, how vulnerable are debenture holders if IBL Finance's loan asset quality deteriorates before maturity?
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