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.
|
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.
