IIFL Finance To Re-Issue Secured NCDs Worth Up To Rs 700 Crore, Board Approves Terms

IIFL Finance Ltd. on Thursday said its board of directors has approved the enhancement of the size of its previously issued non-convertible debentures, taking the total issue up to Rs 700 crore. The NCDs will be re-issued on a private placement basis and will be secured, listed, rated, redeemable instruments under Series D29 Option C, the company informed in an exchange filing.

The total number of NCDs to be issued has been enhanced to 70,000, including a green-shoe option to retain oversubscription of up to 27,500 NCDs. The face value of each debenture is Rs 1 lakh.

This takes the total size of the issue to Rs 700 crore, including a base issue size of Rs 425 crore and a green-shoe option of Rs 275 crore. These debentures will be listed on the National Stock Exchange of India.

As part of the terms and conditions approved, IIFL Finance specified that in case of any event of default — including delay in payment of coupon or redemption of principal on the due date — the company will pay an additional interest of 2% per annum over and above the applicable coupon rate.

This penal interest will be applicable either on the defaulted amounts (in case of a payment default) or on the outstanding principal amount (in case of other defaults), for the period starting from the date of default until it is cured to the satisfaction of the debenture trustee acting on the instructions of the debenture holders.

The announcement comes after IIFL Finance reported a sharp 92% fall in consolidated net profit to Rs 40.70 crore for the third quarter of fiscal 2025, from Rs 490.44 crore in the previous quarter. The company’s total income also declined 4.4% quarter-on-quarter to Rs 2,442.58 crore.

This is the first full quarter of operations since the Reserve Bank of India lifted restrictions on the lender, which was barred in March last year from issuing fresh loans against gold due to regulatory concerns over serious operational lapses.