Smallcap NBFC to raise ₹500 crore via public issue of NCDs at 10.24% PA effective yield; stock gains 8% in one month

IIFL Finance announced a public issue of secured, rated, listed non-convertible debentures (NCDs) to raise up to ₹500 crore. The smallcap non-banking financial company (NBFC)'s issue will open on April 7, 2025, and close on April 23, 2025. The NCDs offer a highest effective yield or coupon of upto 10.24 per cent.

Shares of IIFL Finance have gained 3.76 per cent in the last five sessions and four per cent in one month. However, the NBFC stock has plunged 20 per cent year-to-date (YTD). On Friday, shares settled 3.23 per cent lower at ₹340.15 apiece on the BSE. It commands a market cap of ₹14,444.18 crore.

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IIFL Finance to raise funds via public issue of NCDs

IIFL Finance said that funds raised will be used for the purpose of onward lending, financing/refinancing the existing indebtedness of the company and general corporate purposes. The NCDs under Series IX offer its highest effective yield of 10.24 per cent per annum for the tenor of 60 months.

The NCDs are available in tenors of 15 months, 24 months, 36 months and 60 months, it said, adding that the frequency of interest payment is available on a monthly, annual and cumulative basis. The base issue size is ₹100 crore, with a green shoe option to retain oversubscription up to ₹400 crore. The NCDs will be issued at a face value of ₹1,000, with a minimum application size of ₹10,000. Allotment will be made on a first-come, first-served basis.

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CRISIL and ICRA have rated the NCDs “AA/Stable,” indicating high safety and low credit risk. The debentures with these ratings are considered to have high degree of safety regarding timely servicing of financial obligations. Such debentures carry very low credit risk.

The NCDs will be listed on BSE and NSE, with NSE acting as the designated stock exchange. The lead managers for the issue include Trust Investment Advisors, Nuvama Wealth Management, and IIFL Capital Services.

IIFL Finance details

IIFL Finance, an RBI-registered NBFC-Middle Layer, offers credit through home loans, gold loans, MSME loans, personal loans, microfinance, and more. As of December 31, 2024, IIFL had ₹71,410.19 crore in assets under management and a branch network of 4,858 locations across India.

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IIFL Finance and its subsidiaries’ offerings include home loans, gold loans, MSME secured loan, MSME unsecured loan, personal loan, Supply Chain Finance, Microfinance, Construction and Real Estate Finance and Capital Market Finance; catering to retail and corporate clients. Subsidiaries of the company are IIFL Home Finance Ltd, IIFL Samasta Finance Ltd (Formerly Samasta Microfinance Ltd), IIHFL Sales Ltd and IIFL Open Fintech Private Ltd