IIFL Finance Opens Public NCD Issue, Aims to Raise ₹500 Crore

IIFL Finance has announced the launch of a public issue of secured, rated, listed non-convertible debentures (NCDs) to raise up to ₹500 crore. The issue will open for subscription on April 7, 2025, and close on April 23, 2025.

Details of NCDs 

The NCDs offer a coupon rate of up to 10.25% per annum, with various tenors and payout structures to suit different investor preferences. The base issue size is ₹100 crore, with a green shoe option of ₹400 crore to retain oversubscription, taking the total fundraising potential to ₹500 crore.

The debentures will be issued at a face value of ₹1,000 per NCD, with a minimum application size of ₹10,000. Allotments will be made on a first-come, first-served basis.

Investors can choose from tenors of 15, 24, 36, or 60 months, with interest payout options including monthly, annual, and cumulative modes. Notably, Series IX offers the highest effective yield of 10.24% per annum for a 60-month tenor.

Lead Managers for the Issue

The lead managers for the NCD issue are Trust Investment Advisors, Nuvama Wealth Management, and IIFL Capital Services, ensuring strong institutional support and smooth execution of the offering.

High Credit Ratings and Use of Proceeds

The NCDs have been assigned a rating of “AA/Stable” by both CRISIL and ICRA, indicating high safety and low credit risk for investors. According to the company, the proceeds from the issue will be utilised for onward lending, financing, and general corporate purposes.

The NCDs will be listed on both the BSE and NSE, with the NSE acting as the designated stock exchange.

Strong Financial Profile and Distribution Network

IIFL Finance, a Reserve Bank of India (RBI)-registered NBFC-Middle Layer, provides a range of credit products including home loans, gold loans, MSME loans, personal loans, and microfinance.

As of December 31, 2024, the company reported assets under management (AUM) of ₹71,410.19 crore and a wide network of 4,858 branches across the country.

Stock Performance 

On April 07, 2025, IIFL Finance share price traded 6.19% lower at ₹319.20 at 9:17 AM (IST). IIFL Finance’s share price reached a 52-week high of ₹560.50, and a 52-week low of ₹280.95. As per BSE, the total traded volume for the stock stood at 4,957 shares with a turnover of ₹15.52 lakhs.

According to exchange data, IIFL Finance shares are trading at a price-to-earnings (P/E) ratio of -51.04x, based on its trailing 12-month earnings per share (EPS) of ₹-6.67, and a price-to-book (P/B) ratio of 2.25.

Conclusion 

IIFL Finance’s latest NCD offering presents a compelling opportunity for investors seeking stable returns with high credit safety.

Backed by strong ratings and flexible tenors, the issue reflects the company’s robust financial health and expansive reach. The funds raised will support further lending and growth, reinforcing IIFL’s position in India’s non-banking financial sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.