Intimation of issuance of Non-Convertible Debentures on Private Placement basis.
Awaiting price reaction for this filing.
IIFL Finance Limited's Finance Committee approved modified terms for issuing unsecured, subordinated, listed, rated, redeemable Non-Convertible Debentures (Series D33) via private placement. The issue offers two options: Option A with up to 30,000 NCDs aggregating INR 300 Crore (base size INR 100 Cr + green-shoe INR 200 Cr) over a 10-year tenor with annual interest payments, and Option B with up to 30,000 NCDs aggregating INR 300 Crore (base size INR 50 Cr + green-shoe INR 250 Cr) over a 7-year tenor with monthly interest payments. Each NCD has a face value of INR 1,00,000 and will be listed on the National Stock Exchange. The coupon rate will be determined through NSE's electronic bidding platform, with allotment scheduled for June 24, 2025. An additional 2% p.a. interest will apply in case of any payment default.
This NCD issuance will help IIFL Finance raise up to INR 600 Crore (combined) to strengthen its capital base and support lending operations, which is positive for business growth. Existing equity shareholders are not directly affected as these are debt instruments, though increased leverage should be monitored.