IIFL Finance, a diversified non-banking financial company (NBFC), on Friday said that it will raise up to ₹500 crore through a public issue of secured, rated, listed redeemable non-convertible debentures (NCDs). The NCD to offer coupon up to 10.25% per annum.

The funds raised will be used for onward lending, financing and general corporate purposes, IIFL Finance said in a release.

The NCDs will be issued at face value of ₹1,000 and the minimum application size is ₹10,000 across all categories. The public issue opens on Monday, April 7, 2025 and closes on Wednesday, April 23, 2025, with an option of early closure. The allotment will be made on first come first served basis, it said.

The base issue size of the NCD is ₹100 crore, with a green shoe option to retain over-subscription of up to ₹400 crore, aggregating to ₹500 crore. The NCDs under Series IX offer highest effective yield of 10.24% per annum for the tenor of 60 months. The NCDs are available in tenors of 15 months, 24 months, 36 months and 60 months. The frequency of interest payment is available on monthly, annual and cumulative basis, the release noted.

The NCDs are rated “Crisil AA/Stable” by Crisil Ratings and “[ICRA] AA (Stable)” by ICRA. The debentures with these ratings are considered to have high degree of safety regarding timely servicing of financial obligations. Such debentures carry very low credit risk. The issue opens on Monday, April 7, 2025 and closes on Wednesday, April 23, 2025.

IIFL Finance is a NBFC-ML (NBFC-Middle Layer) registered with the RBI, catering to the credit requirements of a diverse customer base with its plethora of products. IIFL Finance and its subsidiaries’ offerings include home loans, gold loans, MSME secured loan, MSME unsecured Loan, personal loan, supply chain finance, microfinance, construction and real estate finance and capital market finance; catering to both retail and corporate clients. Subsidiaries of the Company are IIFL Home Finance Limited, IIFL Samasta Finance Limited (Formerly known as Samasta Microfinance Limited), IIHFL Sales Limited and IIFL Open Fintech Private Limited. 

As of December 31, 2024, the Company has a widespread network of 4,858 branches spanning the length and breadth of the country and the company (along with its subsidiaries) has a strong workforce of 38,235 employees as of December 31, 2024.

As at December 31, 2024, consolidated assets under management stood at ₹71,410.19 crore.  The Company reported gross non-performing asset (GNPA) of 2.42% and net non-performing asset (NNPA) of 1.01% as a percentage of its consolidated loan book as on December 31, 2024. Additionally, as on December 31, 2024, 71.92% of the company’s consolidated loan book is secured with adequate collaterals which helps mitigate risks further, as per the release. 

The lead managers to the issue are Trust Investment Advisors Private Limited, Nuvama Wealth Management Limited, IIFL Capital Services Limited (Formerly known as IIFL Securities Limited)*. The NCDs will be listed on the BSE and NSE, to provide liquidity to the investors. NSE will be the designated stock exchange for this Issue.