Kolkata: IIFL Finance Limited, one of India’s leading non-banking financial companies (NBFCs), has announced the launch of a public issue of secured, redeemable non-convertible debentures (NCDs) to raise up to ₹2,000 crore.
The issue will open on Tuesday, February 17, 2026, with a base issue size of ₹500 crore and a green-shoe option of ₹1,500 crore, allowing the company to retain oversubscription. The proceeds will be utilised for business growth and capital augmentation.
Attractive Returns and Flexible Options
The NCDs offer an effective yield of up to 9% per annum, making them an attractive fixed-income investment option. Investors can choose from tenors of 24 months, 36 months, and 60 months, along with multiple interest payout options including monthly, annual, and cumulative (at maturity).
Each NCD has a face value of ₹1,000, with a minimum application size of ₹10,000 across investor categories.
Strong Credit Ratings
The proposed issue has received strong credit ratings:
- CRISIL AA / Stable by CRISIL Ratings
- BWR AA+ (Stable) by Brickwork Ratings
These ratings indicate a high degree of safety and very low credit risk with respect to timely servicing of interest and principal.
Management Commentary
Commenting on the fund raise, Nirmal Jain, Founder and Managing Director of IIFL Finance, said:
“IIFL Finance is among India’s leading NBFCs, with a strong nationwide presence and a diversified retail portfolio serving the credit needs of 4.6 million largely underserved customers. This fund raise will help us expand credit access further while diversifying our funding sources. Over the years, we have built a strong track record of raising funds through bonds and ensuring timely repayment.”
Robust Financial Performance
As of December 31, 2025, IIFL Finance reported:
- Consolidated Assets Under Management (AUM): ₹98,336 crore
- Gross NPA: 1.60%
- Net NPA: 0.75%
- Secured loan book: 83.61% backed by adequate collateral
For Q3 FY26, the company posted a Profit After Tax (PAT) of ₹501.3 crore, marking a 514% year-on-year growth. PAT for the nine months ended FY26 stood at ₹1,193.5 crore, up 265% year-on-year, reflecting strong operational momentum and asset quality.
Nationwide Presence
On a consolidated basis, the company operates through 4,761 branches across India and employs 36,786 people, supported by strong relationships with multiple banks and financial institutions.
Issue Details
- Lead Managers: Trust Investment Advisors Private Limited, Nuvama Wealth Management Limited, and IIFL Capital Services Limited
- Listing: Proposed on BSE Limited and National Stock Exchange of India Limited
- Issue Period: February 17, 2026 – March 4, 2026 (with option for early closure)
- Allotment: First-come, first-served basis
With competitive yields, strong ratings, and a solid financial track record, the IIFL Finance NCD issue is positioned as a compelling option for investors seeking relatively stable fixed-income returns.
