IIFL Finance, one of India’s leading non-banking financial companies (NBFCs), has announced its plan to raise ₹700 crore through non-convertible debentures (NCDs) on a private placement basis. The decision was approved by the Finance Committee of the Board of Directors on March 13, 2025, as per the company’s regulatory filing.
The fundraising initiative involves the issuance of 70,000 secured, listed, rated, and redeemable NCDs under Series D29 Option C. The plan includes a base issue size of ₹425 crore, with a green-shoe option to retain oversubscription of up to ₹275 crore, bringing the total to ₹700 crore. Each NCD carries a face value of ₹1 lakh.
Key Features of the NCDs:
- Interest Penalty: IIFL Finance has introduced a 2% annual penalty interest for delays in coupon payments or principal redemption. This penalty will apply to defaulted amounts or the outstanding principal in case of delays.
- Listing: The NCDs will be listed on the National Stock Exchange of India (NSE), ensuring transparency and accessibility for investors.
- Purpose: The funds raised will be utilized to strengthen the company’s lending operations and expand its financial services portfolio.
This move comes as part of IIFL Finance’s broader strategy to enhance its financial stability and operational efficiency. The company had previously disclosed its intent to raise up to ₹10,000 crore through private placement of NCDs in a filing dated June 2024.
Despite a recent decline in consolidated net profit, IIFL Finance remains committed to its growth trajectory. The company’s proactive approach to fundraising underscores its focus on meeting market demands and maintaining its position as a leading player in the NBFC sector.
Investors and stakeholders are advised to monitor further updates on this development as IIFL Finance progresses with its fundraising plans.
