IIFL Finance's Non-convertible Debentures Issue Oversubscribed 4.75 times, Plans Early Closure

IIFL Finance Limited ("IIFL Finance"), which is a non-banking financial company (NBFC), today said that its public issue of secured, rated, listed redeemable non-convertible debentures ("NCDs") was oversubscribed 4.75 times amounting to Rs 475.03 crore by end of the day April 9. The issue opened on Monday, April 7, 2025 and will close on Friday, April 11, 2025, due to oversubcription ahead of its proposed date of closing of April 23, 2025. The issue was offered on first come first served basis with an option of early closure.

Govind Modani, Head of Treasury, IIFL Finance said, "We received overwhelming response for our NCD issue based on the strong corporate profile and solid track record of over 25 years."

The funds raised will be used for the purpose of onward lending, financing / refinancing the existing indebtedness of the Company, and/or debt servicing (payment of interest and/or repayment / prepayment of interest and principal of existing borrowings of our Company) and general corporate purposes.

The NCDs are rated "Crisil AA/Stable" by Crisil Ratings Limited and "[ICRA] AA (Stable)" by ICRA Limited. 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.

IIFL Finance issued NCDs up to Rs 100 crore ("Base Issue Size"), with an option to retain over-subscription of up to Rs 400 crore ("Green Shoe Option") aggregating up to Rs 500 crore. The NCDs under Series IX offer highest effective yield of 10.24% per annum for the tenor of 60 months. The NCDs were available in tenors of 15 months, 24 months, 36 months and 60 months. The frequency of interest payment was available on monthly, annual and cumulative basis.

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 Rs. 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 our 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.

The lead managers to the issue were 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 Limited ("BSE") and National Stock Exchange of India Limited ("NSE"), to provide liquidity to the investors. NSE is the Designated Stock Exchange for this Issue. The NCDs were issued at face value of Rs 1,000 and the minimum application size was Rs 10,000 across all categories. The public issue opened on Monday, April 7, 2025 and will close on Friday April 11, ahead of planned closing of Wednesday, April 23, 2025.

Shares of IIFL Finance Limited was last trading in BSE at Rs. 325.05 as compared to the previous close of Rs. 333.60. The total number of shares traded during the day was 205640 in over 11166 trades.

The stock hit an intraday high of Rs. 332.60 and intraday low of 305.55. The net turnover during the day was Rs. 65496208.00.

Source : Equity Bulls

Keywords

IIFLFinance INE530B01024 NBFC FundRaising NCDs Oversubscription