IIFL Finance Received Board Approval to Raise ₹700 Crore Via NCDs

IIFL Finance, a diversified non-banking financial company (NBFC) in India engaged in loans and mortgages, along with its subsidiaries, has announced plans to raise up to ₹700 crore through secured, listed, rated, redeemable non-convertible debentures (NCDs) via private placement.

Fundraising Details

The company disclosed in an exchange filing that the Finance Committee of the Board of Directors approved the issuance on March 13, 2025. The fundraising plan includes the issuance of 70,000 NCDs, with a green-shoe option allowing for an additional 27,500 NCDs in case of oversubscription.

The total issue comprises a base size of ₹425 crore, with an option to retain up to ₹275 crore in additional subscriptions, bringing the total to ₹700 crore. Each NCD has a face value of ₹1 lakh.

Additionally, IIFL Finance has introduced a 2% annual penalty interest for delayed coupon payments or principal redemption. This penalty will apply to any missed payments or to the outstanding principal in case of delay.

Earlier, on March 10, the company informed stock exchanges about the proposed NCD issuance. In a filing dated June 15, 2024, IIFL Finance also disclosed its plan to raise up to ₹10,000 crore through the private placement of NCDs.

IIFL Finance Q3FY25 Performance

For the quarter ending December 31, 2024, IIFL Finance reported a profit after tax of ₹82 crore (before non-controlling interest), reflecting an 85% decline year-on-year. In terms of core products, the home loan AUM grew by 19%, while MSME loan AUM increased by 31%.

However, microfinance AUM declined by 14% year-on-year, and gold loans saw a significant decrease of 39% compared to the previous year. Overall, the company’s loan AUM decreased by 8% year-on-year, totalling ₹71,410 crore.

Conclusion

IIFL Finance is taking strategic steps to raise ₹700 crore through the issuance of secured, listed, rated, redeemable non-convertible debentures (NCDs), which will help strengthen its financial position and support its growth initiatives.

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