IIFL Finance Subsidiary To Raise Up To Rs 500 Crore Via NCDs

IIFL Home Finance Ltd., a subsidiary of IIFL Finance Ltd., has revealed plans to raise up to Rs 500 crore by issuing non-convertible debentures (NCDs). The NCDs will be secured, rated, listed, and redeemable, and will help the company raise funds without the option of converting them into equity. The issue will involve a base size of Rs 100 crore, with an option to retain an oversubscription of up to Rs 400 crore.

IIFL Home Finance’s NCD Public Issue

The public issue of NCDs will consist of 50 lakh securities, each with a face value of Rs 1,000. These debentures are fixed-income instruments, and the company aims to raise funds through them, offering fixed returns to investors.

The NCDs will be secured and listed, making them tradable in the secondary market. This is in line with the company’s strategy to raise long-term capital, which can be used to support its lending business and operational growth.

IIFL Finance’s Broader Fundraising Plans

In October 2024, IIFL Finance announced its plan to raise up to Rs 2,500 crore through debt instruments. The board approved the public issuance of secured, rated, listed, and redeemable NCDs in one or more tranches, subject to regulatory approvals.

This fundraising follows the Reserve Bank of India’s decision to lift restrictions placed on IIFL Finance earlier in the year. These restrictions, imposed in March 2024, had prevented the company from lending against gold due to identified lapses in operations. With these restrictions now lifted, IIFL Finance is proceeding with its planned fundraising activities.

IIFL Finance Share Performance

IIFL Finance stock currently trades at Rs.427.90 per share, The stock has remained flat over the month and has fallen by 27% over the past year, The stock has made a 52-week high and 52-week low of Rs.653.62 and Rs.304.25 respectively.

Conclusion: IIFL Home Finance Ltd. is moving forward with its NCD issue, as part of its capital-raising strategy, following recent regulatory changes impacting its parent company, IIFL Finance Ltd.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.