IIFL Finance Approves INR 200 Crore Perpetual NCD Issuance on Private Placement Basis
IIFL Finance Limited's Finance Committee, at its meeting on May 15, 2026, approved the issuance of up to 200 Listed, Unsecured, Non-Convertible Perpetual Debentures aggregating INR 200 crore on a private placement basis, with each NCD carrying a face value of INR 1,00,00,000. The debentures are perpetual in nature, proposed to be listed on NSE, and carry a call option exercisable after at least 10 years from allotment with prior RBI approval. In case of default, an additional interest of 2% p.a. over the applicable Coupon Rate is payable until the default is cured.
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IIFL Finance Limited's Finance Committee, at its meeting held on May 15, 2026, approved the terms and conditions for the issuance of Listed, Unsecured, Non-Convertible Perpetual Debentures (NCDs) on a private placement basis. This intimation was made pursuant to Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and follows an earlier intimation dated May 12, 2026. The disclosure was filed in accordance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.
Issue Details
The proposed issuance involves up to 200 NCDs, aggregating to a total issue size of up to INR 200 crore, with each NCD carrying a face value of INR 1,00,00,000. The debentures are to be issued in one or multiple tranches and are proposed to be listed on the National Stock Exchange of India Limited. The following table summarises the key parameters of the issue:
| Parameter: | Details |
|---|---|
| Type of Securities: | Listed, Unsecured, Non-Convertible Perpetual Debentures |
| Type of Issuance: | Private Placement |
| Total Number of Securities: | Up to 200 NCDs |
| Size of Issue: | Up to INR 200 crore (up to 200 NCDs of face value of INR 1,00,00,000 each) |
| Proposed to be Listed: | Yes |
| Name of Stock Exchange(s): | National Stock Exchange of India Limited |
| Tenure of the Instrument: | Perpetual |
| Date of Allotment and Date of Maturity: | As per relevant Key Information Document |
| Coupon/Interest: | As per relevant Key Information Document |
| Schedule of Payment of Coupon/Interest and Principal: | As per relevant Key Information Document |
| Security: | Not Applicable |
| Special Rights/Interest/Privileges attached to NCDs and charges thereof: | Not Applicable |
Redemption and Default Provisions
Given the perpetual nature of the NCDs, standard redemption terms are not applicable. However, IIFL Finance retains the right to exercise a call option after the expiry of at least 10 years from the deemed date of allotment, subject to prior approval from the Reserve Bank of India. The table below outlines the key provisions related to default and redemption:
| Provision: | Details |
|---|---|
| Additional Interest on Default: | 2% p.a. over and above the Coupon Rate for the period from the date of occurrence of the Event of Default until it is cured to the satisfaction of the Debenture Trustee |
| Redemption of Debentures: | Not applicable; NCDs are perpetual in nature, subject to call option exercisable after at least 10 years from deemed date of allotment with prior RBI approval |
In the event of a delay in payment of interest or coupon and/or redemption of principal on due dates, the company is required to pay additional interest at the rate of 2% p.a. over and above the applicable Coupon Rate. This additional interest accrues from the date of occurrence of the Event of Default until the default is cured to the satisfaction of the Debenture Trustee, acting on the instructions of the Debenture Holders.
Regulatory Compliance
The intimation was submitted to both BSE Limited and the National Stock Exchange of India Limited, and has also been uploaded on the company's website at www.iifl.com . The filing was signed by Samrat Sanyal, Company Secretary & Compliance Officer, on May 15, 2026, from Mumbai. A copy of the intimation was also marked to India International Exchange (IFSC) Limited, GIFT City, Gandhinagar, Gujarat.
Historical Stock Returns for IIFL Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.53% | +8.06% | +12.69% | -8.73% | +20.77% | +100.02% |
How might IIFL Finance's perpetual NCD issuance impact its Tier 1 capital adequacy ratios, and could this signal further capital-raising plans in the near term?
Given the 10-year lock-in before the call option can be exercised, how will institutional investors price the liquidity risk of these perpetual debentures in the current interest rate environment?
Could the RBI's evolving regulatory stance on perpetual debt instruments for NBFCs affect IIFL Finance's ability to exercise the call option when eligible?
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