IIFL Finance Limited has approved the proposed public issue of Secured Rated Redeemable Non-Convertible Debentures (NCDs) through Tranche I Issue, aggregating up to ₹2,000 crores. The base issue size is ₹500 crores with an oversubscription option of up to ₹1,500 crores. The issue is scheduled to open on Tuesday, February 17, 2026, and close on Wednesday, March 4, 2026. NCDs will be listed on BSE and NSE.
Approval for Tranche I NCD Issuance
The Finance Committee of IIFL Finance Limited has sanctioned the public issuance of Secured Rated Redeemable Non-Convertible Debentures (NCDs) under the provisions of the Shelf Prospectus. This issuance constitutes the Tranche I Issue, which is part of a larger shelf limit of ₹2,000 crores.
The aggregate size of the Tranche I Issue is set at ₹2,000 crores, comprising a Base Issue Size of ₹500 crores, with an option to retain oversubscription up to an additional ₹1,500 crores.
Key Dates and Listing Details
The operational timeline for the Tranche I Issue has been finalized as follows:
- Tranche I Issue Opening Date: Tuesday, February 17, 2026
- Tranche I Issue Closing Date: Wednesday, March 4, 2026*
The NCDs are proposed to be listed on both the BSE and NSE, with NSE designated as the primary stock exchange for the listing.
Security and Default Provisions
The principal amount and interest on the NCDs will be secured by a first ranking pari passu charge by way of hypothecation over the company’s receivables, book debts, loans, advances, and current assets. This security cover must be maintained at at least 100% of the outstanding obligations until the Maturity Date.
In the event of a failure to execute the Debenture Trust Deed within the stipulated period, the Company shall pay penalty interest of at least 2% per annum over and above the agreed coupon rate until the deed’s execution. Similarly, delays in allotment, refunds, or principal payments beyond prescribed limits will also attract a minimum penalty interest of 2% per annum.
Specific Terms for NCD Series
The issuance covers NCDs with tenors of 24, 36, and 60 months, with coupon rates for Category I, II, III, & IV holders ranging from 8.37% to 9.00% per annum (monthly interest payment options). The Effective Yields for these categories range from 8.69% to 9.00% annually.
For the 60-month tenor (Series VII, VIII, IX), the NCDs feature redemption amounts including a premium:
- Series VII (Annual): Maturity Amount is ₹1,181.80 per NCD.
- Series VIII (Annual): Maturity Amount is ₹1,290.00 per NCD.
- Series IX (Annual): Maturity Amount is ₹1,539.00 per NCD.
The minimum application size for the offering across all series is ₹10,000 (representing 10 NCDs), and NCDs are issued at a face value/issue price of ₹1,000 each.
The Company noted that Series V NCDs will be allocated to applicants who have not indicated a specific series choice.
Source: BSE
