IIFL Finance NCD

IIFL Finance has launched its Tranche I Secured NCD issue (February 2026), offering AA/AA+ rated debentures with coupon rates upto 9.00% and 10.25% per annum, across 15–60 month tenors, aiming to raise ₹2,000 crore from retail and institutional investors.​

IIFL Finance NCD Tranche I February 2026 – key details

• Issuer: IIFL Finance Limited – diversified NBFC offering home loans, gold loans, business loans, microfinance and LAS, with 1,000+ branches and 10,500+ employees in India plus international presence in Canada, US, UK, Singapore, Hong Kong and UAE.
• Issue structure:
  • Shelf size: ₹2,000 crore.
  • Base issue: ₹500 crore.
  • Oversubscription (green‑shoe): up to ₹1,500 crore.
  • Total Tranche I size: ₹2,000 crore.
• Type: Secured, redeemable, non‑convertible debentures (NCDs) under a Shelf Prospectus.
• Face value / Issue price: ₹1,000 per NCD.
• Issue opening / closing:
  • Opens: 17 February 2026 (Tuesday).
  • Closes: 4 March 2026 (Wednesday).
• Listing: Proposed on NSE and BSE.
• Minimum investment:
  • 10 NCDs = ₹10,000 (minimum lot).
  • Market lot for trading: 1 NCD.​
• Coupon range: 9.00% – 10.25% p.a. depending on series and tenor.​
• Credit rating:
  • CRISIL Ratings: AA / Stable – high degree of safety, very low credit risk.
  • Brickwork Ratings: AA+ / Stable – high degree of safety, very low credit risk.​
• Investor allocation:
  • Institutional: 20%.
  • Non‑Institutional: 30%.
  • HNI: 35%.
  • Retail: 15%.​

IIFL Finance NCD series & interest rates

All series are secured NCDs with different interest payment frequencies and tenors.​

Series	Tenor	Payment Frequency	Coupon	Effective Yield	Redemption Amount
Series 1	24 Months	month	8.37%	8.70%	₹1,000.0
Series 2	36 Months	month	8.52%	8.85%	₹1,000.00
Series 3	60 Months	month	8.65%	9.00%	₹1,000.00
Series 4	24 Months	annually	8.70%	8.69%	₹1,000.00
Series 5	36 Months	annually	8.85%	8.84%	₹1,000.00
Series 6	60 Months	annually	9.00%	8.99%	₹1,000.00
Series 7	24 Months	Cumulative	NA	8.70%	₹1,181.85
Series 8	36 Months	Cumulative	NA	8.85%	₹1,290.00
Series 9	60 Months	Cumulative	NA	9.00%	₹1,539.00

IIFL Finance – Company Financials​

The company has demonstrated steady growth in its financial performance over the years. As of March 31, 2022, total assets stood at ₹45,910.18 crore, with revenue of ₹7,006.28 crore, a profit after tax (PAT) of ₹1,188.25 crore, and a net worth of ₹6,273.85 crore. In FY 2023, assets increased to ₹53,001.32 crore, while revenue grew to ₹8,447.11 crore and PAT improved to ₹1,607.55 crore, reflecting stronger profitability. The company’s net worth also rose significantly to ₹8,790.50 crore during the year.

This growth momentum continued in FY 2024, with assets expanding further to ₹62,421.16 crore, revenue reaching ₹10,490.47 crore, and PAT increasing to ₹1,974.22 crore. Net worth strengthened to ₹10,357.16 crore, indicating sustained earnings retention and balance sheet improvement. For the six months ended September 30, 2024, the company reported assets of ₹55,372.41 crore, revenue of ₹5,201.98 crore, and PAT of ₹245.09 crore, while net worth increased to ₹11,867.93 crore, highlighting continued capital strengthening despite lower half-year profitability.

The numbers show steady growth in assets, revenue and net worth, with consistent profitability.​

Strengths of IIFL Finance NCD issue

• Attractive yields vs FDs: Coupon range 9.00–10.25% and effective yields up to ~10.24% are meaningfully higher than most bank fixed deposits of similar tenure.​
• Secured, rated instruments: All series are secured NCDs backed by company assets and cash flows, rated AA (CRISIL) / AA+ (Brickwork) with stable outlook, indicating a high degree of safety and very low credit risk.​
• Multiple tenors & payout options: Choice of 15, 24, 36 and 60 months, plus annual, monthly and cumulative options, allows investors to align investments with income needs and time horizons.​
• Diversified, growing NBFC: IIFL Finance has multi‑product, pan‑India operations with international presence and marquee global investors, supporting its credit profile.​
• Exchange listing & tradability: Proposed listing on NSE and BSE offers exit flexibility via secondary market (subject to liquidity), unlike many corporate FDs.​

Key risks & points to consider

• Credit & NBFC sector risk: Despite strong ratings, NCDs are not risk‑free; NBFCs face risks from asset quality, funding costs, interest rate cycles and regulatory changes impacting profitability and ability to service debt.​
• Liquidity risk in secondary market: While listed, NCDs may see low trading volumes, making it hard to exit early at fair prices; investors should be ready to hold till maturity.​
• Interest rate risk: Fixed‑rate NCDs lock in current yields; if interest rates rise further, new issues may offer higher returns, and listed NCD prices can fall.​
• No direct early redemption with issuer: Investors cannot redeem directly with IIFL before maturity; early exit is only via stock exchange sale (or call option, if specified – not mentioned here).​
• Concentration risk for small investors: Minimum ticket ₹10,000 is low, but over‑allocating to a single NBFC NCD can increase portfolio risk; diversification across issuers and products is still important.​

How to apply for IIFL Finance NCD

Retail investors (up to ₹5 lakh) can apply via NSEgoBID and BSEDirect online platforms or through select intermediaries and brokers that support NCD IPO applications. The process generally includes:​

• Logging into Bondskart
• Entering bid details (series, quantity, price) and providing DP and bank/ASBA or UPI credentials.
• Approving the UPI mandate (for UPI‑based applications) to confirm the bid.​​
• Allotment & checking status:
  • Allotment can be checked on BSE website or the Registrar (MUFG Intime) using PAN / Aadhaar after finalisation; oversubscription retention often means higher chance of full allotment.​

FAQs :

1. What are the issue dates for IIFL Finance NCD Tranche I?

The NCD issue opens on 17 February 2026 and closes on 4 March 2026, subject to early closure or extension as specified in the offer document.

2. What is the minimum amount required to invest?

The minimum application size is 10 NCDs, i.e., ₹10,000 (10 × ₹1,000 face value), and thereafter in multiples of 1 NCD.

3. What are the interest rates and tenures on offer?

Coupons range from 9.00% to 10.25% per annum, with tenures of 15, 24, 36 and 60 months across nine series offering annual, monthly and cumulative options.

4. What is the highest interest/yield I can get?

The highest annual coupon is 10.25% p.a. on the 60‑month annual payout Series 9, with an effective yield of 10.24% p.a.; the 36‑month cumulative Series 7 offers maturity of ₹1,322.28 for ₹1,000 (effective ~9.75% p.a.).

5. How safe are these NCDs? What are the ratings?

The NCDs are secured and rated AA / Stable by CRISIL and AA+ / Stable by Brickwork, indicating a high degree of safety with very low credit risk, though they are not risk‑free and sit below AAA instruments.

6. Can I exit before maturity?

There is no direct premature redemption from IIFL Finance; however, since the NCDs are proposed to be listed on NSE and BSE, you can sell them on the stock exchange, subject to liquidity and prevailing market price.