IIFL Finance Limited announced the approval for the allotment of 1,02,16,391 Secured, Rated, Listed, Redeemable, Non-Convertible Debentures (NCDs) amounting to ₹1,021.6391 crore. This allotment is part of the wider Tranche I Issue, which has a total limit of ₹2,000 crore. The allotment was finalized on March 06, 2026, concluding the offer period which ran from February 17 to March 4, 2026.
Allotment Approval for Public Issue of NCDs
IIFL Finance Limited has officially confirmed the allotment of NCDs following the approval by the Finance Committee of the Board of Directors on March 06, 2026. The issuance concerns Secured, Rated, Listed, Redeemable, Non-Convertible Debentures (NCDs) with a face value of INR 1,000/- each.
The total allotment reached 1,02,16,391 NCDs, aggregating to INR 1,021,63,91,000 on a public issue basis. This allotment falls under the Tranche I Issue Limit, which permits an aggregate raising of up to ₹2,000 crores, starting from a Base Issue Size of ₹500 crores with an option to retain oversubscription up to ₹1,500 crores.
Tranche I Issue Timeline and Security Details
The application process for the Tranche I Issue opened on Tuesday, February 17, 2026, and concluded on Wednesday, March 4, 2026. The Deemed Date of allotment is confirmed as March 06, 2026, and the NCDs are proposed to be listed on both BSE Limited and the National Stock Exchange of India Limited (NSE).
The principal amount, along with accrued interest, is secured by a first-ranking pari passu charge created via hypothecation over the Company’s present and future receivables, book debts, loans, advances, and current assets. This security structure ensures a security cover of at least 100% of the outstanding principal amounts and interest until the Maturity Date, in favor of the Debenture Trustee.
Detailed Series Structure and Returns
The allotment covered nine distinct series of NCDs with varying tenures and interest structures, as detailed below:
Series Allocation Summary
- Series I: 8,85,713 NCDs
- Series II: 3,57,417 NCDs
- Series III: 8,02,864 NCDs
- Series IV: 43,45,595 NCDs
- Series V: 19,86,524 NCDs
- Series VI: 11,22,435 NCDs
- Series VII: 2,04,939 NCDs
- Series VIII: 2,61,126 NCDs
- Series IX: 2,49,778 NCDs
Key Coupon and Yield Metrics (Category I, II, III & IV)
The coupon rates vary based on tenure (24, 36, or 60 months) and interest frequency (Monthly, Annual, or Cumulative at maturity):
- Series I (24 Mo, Monthly): Coupon 8.37%, Effective Yield 8.70%. Redemption: March 06, 2028.
- Series IV (24 Mo, Annual): Coupon 8.70%, Effective Yield 8.69%. Redemption: March 06, 2028.
- Series IX (60 Mo, Cumulative): Coupon NA, Effective Yield 9.00%. Maturity Amount: ₹1,539.00. Redemption: March 06, 2031.
For cumulative series (VII, VIII, IX), the redemption amounts at maturity range from ₹1,181.85 (Series VII) to ₹1,539.00 (Series IX) per NCD, with yields up to 9.00% per annum.
Default Penalties
The Company commits to paying interest over and above the agreed coupon rate for delays in allotment, refunds, listing, or execution of the Debenture Trust Deed as prescribed by law. Furthermore, if the trust deed execution is delayed beyond the prescribed period, the Company must pay the debenture holders at least 2% (two percent) per annum over the agreed coupon rate until execution.
Source: BSE
