Strong Demand Pushes IIFL Finance NCDs to Close Ahead of Schedule

IIFL Finance’s latest public issue of Non-Convertible Debentures (NCDs) has garnered robust demand from investors, prompting the company to close the issue much earlier than planned. The NBFC announced that the issue, initially scheduled to close on April 23, will now close on April 11 due to an overwhelming response.

NCD Issue Oversubscribed Nearly 5 Times

The secured and listed redeemable NCD issue received a strong investor turnout, getting oversubscribed 4.75 times. By April 9, the company had received applications worth ₹475.03 crore. Offered on a first-come, first-served basis, the issue included a base size of ₹100 crore with a green-shoe option (an option that allows a company to raise additional funds by accepting excess demand beyond the base issue size) to retain oversubscription of up to ₹400 crore, aggregating a total of ₹500 crore.

Wide Range of Tenor and Interest Options

IIFL Finance offered the NCDs across tenors of 15, 24, 36, and 60 months, with options for monthly, annual, or cumulative interest payments. The highest effective yield stands at 10.24% per annum for the 60-month series, making it an attractive fixed-income option for investors seeking predictable returns.

Purpose of the Fundraise

The proceeds from the NCD issue will be used to strengthen IIFL Finance’s lending portfolio. Specifically, the funds will support onward lending, refinancing of existing debt, interest payments, and other general corporate requirements.

Company Commentary on Demand

Govind Modani, Head of Treasury at IIFL Finance, expressed gratitude for the investor response, stating that the enthusiastic participation was a reflection of the company’s sound track record and trusted corporate profile.

IIFL Finance Share Price Update

Despite the strong demand for its NCD issue, the positive sentiment was not reflected in IIFL Finance share price. As of 1:50 PM on Friday, April 11, 2025, the stock was trading at ₹320.95, down ₹4.10 or 1.26%. It touched an intraday high of ₹330.50, while its 52-week high stands at ₹560.60.

Conclusion

The early closure of the NCD issue highlights IIFL Finance’s strong reputation and continued trust among fixed-income investors, even as equity market sentiment remains cautious.

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