IIFL Finance NCD

IIFL Finance has launched its Tranche I Secured NCD issue (February 2026), offering 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.​
• 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.​

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.​