Allotment of Non-convertible Debentures on Private Placement Basis
Awaiting price reaction for this filing.
IIFL Finance has allotted 50,000 unsecured, subordinated, listed, rated, redeemable non-convertible debentures (NCDs) on a private placement basis, raising a total of ₹500 crore. The issue is split into two equal tranches of ₹250 crore each: Series D33 Option A carries a 9.30% per annum coupon with a 10-year tenure and annual interest payments, while Series D33 Option B offers 9.25% per annum with a 7-year tenure and monthly interest payments. Both tranches have a face value of ₹1 lakh per debenture and are proposed to be listed on the National Stock Exchange. The debentures are subordinated in nature, which typically qualifies as Tier 2 capital for NBFCs.
This fundraise strengthens IIFL Finance's capital base, as subordinated NCDs count toward Tier 2 capital for NBFCs, supporting future lending growth. The pricing at 9.25–9.30% is reasonable and in line with market rates, suggesting healthy investor demand. For shareholders, this is a positive capital adequacy move with manageable interest cost, though it adds to the company's leverage.