NewsIBL Finance Allots 2 Non-Convertible Debentures Aggregating Rs. 2,00,000 on Private Placement BasisIBL Finance Allots 2 Non-Convertible Debentures Aggregating Rs. 2,00,000 on Private Placement Basis
IBL Finance Limited allotted 2 unlisted, senior, secured, redeemable NCDs of Rs. 1,00,000 each, aggregating Rs. 2,00,000, on a private placement basis on 08 May 2026. The NCDs carry a fixed coupon rate of 13.00% per annum with monthly payment frequency and will mature on 09 October 2028, being 885 days from the date of allotment. The securities are secured by hypothecation of receivables and book debts with a minimum security coverage of 1.05 times the loan amount. The issuance was backed by Board approval on 16 July 2025 and a special shareholder resolution passed on 22 August 2025.
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IBL Finance Limited's Finance Committee, at its meeting held on 08 May 2026, approved the allotment of 2 (Two 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. 2,00,000 (Rupees Two 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: | 02 (Two Only) |
| Face Value per NCD: | Rs. 1,00,000 |
| Issue Price per NCD: | Rs. 1,00,000 |
| Total Issue Size: | Rs. 2,00,000 |
| Date of Allotment: | 08 May 2026 |
| Date of Maturity: | 09 October 2028 (885 days from allotment) |
| Coupon Type: | Fixed |
| Coupon Rate: | 13.00% per annum |
| Coupon Payment Frequency: | Monthly |
| 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 08 May 2026.
Historical Stock Returns for IBL Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.56% | -2.02% | +13.02% | -11.31% | +11.98% | +3.32% |
Will IBL Finance Limited pursue additional NCD issuances or explore listed debt instruments to diversify its funding sources beyond private placements?
How might IBL Finance's 13% fixed coupon rate compare to future market rates by the October 2028 maturity, and what refinancing risks could the company face?
Given the minimal total issue size of Rs. 2 lakh, does this NCD issuance signal a broader strategy by IBL Finance to build relationships with institutional investors for larger future fundraises?
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