Image Source: The Economic Times
IIFL Finance is gearing up for a significant fundraising initiative, with its Finance Committee scheduled to meet on Tuesday, June 10, 2025, to finalize the terms and conditions for issuing Non-Convertible Debentures (NCDs) on a private placement basis, up to a limit of Rs 10,000 crore. This move underscores the company’s ongoing strategy to bolster its balance sheet and fuel future growth, even as it navigates a challenging financial landscape.
Key Highlights
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Mega Fundraising Plan: IIFL Finance plans to raise up to Rs 10,000 crore through the private placement of secured, listed, rated, redeemable NCDs. This is in line with the company’s earlier disclosure and is expected to provide a substantial boost to its lending capabilities.
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Finance Committee Meeting: The crucial meeting on June 10, 2025, will consider and approve the detailed terms and conditions for the NCD issuance, as required under SEBI (LODR) Regulations, 2015.
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Recent NCD Issuances: In recent months, IIFL Finance has actively tapped the debt market, raising Rs 700 crore in March 2025 and Rs 200 crore in May 2025 through similar NCD offerings, each featuring green-shoe options to retain oversubscription.
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Attractive Yields: The company’s NCDs have offered competitive coupon rates, with recent public issues providing yields up to 10.25% per annum, appealing to both institutional and retail investors.
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Investor Safeguards: To enhance investor confidence, IIFL Finance has introduced a 2% annual penalty interest for any delay in coupon payments or principal redemption in its recent NCD terms.
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Strategic Use of Funds: Proceeds from these NCD issues are earmarked for onward lending, refinancing, and general corporate purposes, supporting the company’s diversified loan portfolio across home loans, MSME, gold loans, and microfinance.
Recent Performance Snapshot
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IIFL Finance’s consolidated net profit fell 44.4% year-on-year in Q4 FY25, with total income also declining, reflecting sector-wide challenges.
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Despite financial headwinds, the company continues to focus on expanding its assets under management and strengthening its capital base through strategic fundraising.
Market Impact
Shares of IIFL Finance have experienced volatility, but investor interest remains strong due to the attractive NCD yields and the company’s proactive capital-raising approach.
Source: Business Standard, Fortune India, Upstox, Angel One, CNBC TV18, Elite Wealth, Company Filings
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