IIFL Finance Ltd’s board has approved a debenture issue of up to ₹20 billion, including a green shoe option. Funds will strengthen capital reserves and expand lending operations. Analysts see this as a move to diversify funding sources and reinforce investor confidence in the NBFC’s growth outlook.
IIFL Finance Ltd has announced that its Board of Directors has approved a public issue of secured, rated, listed, redeemable non-convertible debentures (NCDs) worth up to ₹20 billion (₹2,000 crore). The move is aimed at bolstering the company’s funding resources and expanding its lending capabilities across retail and corporate segments.
Key Highlights
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Issue Size: The debenture issue carries a shelf limit of ₹20 billion, with the flexibility to be raised in multiple tranches.
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Green Shoe Option: The offering includes a green shoe option, allowing the company to raise additional funds if investor demand exceeds expectations.
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Purpose: Proceeds will be used to strengthen capital reserves, support financing activities, and enhance lending operations, particularly in consumer finance and SME lending.
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Market Context: The approval comes at a time when IIFL Finance is focusing on diversifying funding sources amid regulatory scrutiny in certain segments.
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Investor Confidence: Analysts note that such large-scale issuances reflect financial resilience and strong demand for debt instruments, likely boosting investor sentiment.
This strategic fundraising initiative underscores IIFL Finance’s commitment to maintaining liquidity strength and supporting its growth trajectory in India’s competitive NBFC sector.
Sources: InvestyWise, ScanX Trade, Yahoo Finance