IIFL Finance Limited, a non-banking financial company (NBFC), has announced a public issue of secured redeemable non-convertible debentures (NCDs) to raise up to Rs 500 crore. The issue, which opened on Monday, April 7, 2025, and will close on Wednesday, April 23, 2025, offers a coupon rate of up to 10.25% per annum.

The company plans to utilise the proceeds for onward lending, financing activities, and general corporate purposes. The NCDs carry high credit ratings—“Crisil AA/Stable” from Crisil Ratings Limited and “[ICRA] AA (Stable)” from ICRA Limited—indicating a high degree of safety and low credit risk.

The bond issue comprises a base issue size of Rs 100 crore with a green shoe option to retain oversubscription up to Rs 400 crore, aggregating a total of Rs 500 crore. Investors can opt for tenors of 15 months, 24 months, 36 months, or 60 months, with Series IX NCDs offering the highest effective yield of 10.24% for a 60-month term. Interest payment options are available on a monthly, annual, or cumulative basis.

IIFL Finance is registered with the Reserve Bank of India as an NBFC-Middle Layer (NBFC-ML). It serves a wide customer base through a range of financial products including home loans, gold loans, MSME loans, personal loans, supply chain finance, microfinance, and real estate finance. Its subsidiaries include IIFL Home Finance Limited, IIFL Samasta Finance Limited, IIHFL Sales Limited, and IIFL Open Fintech Private Limited.

As of December 31, 2024, IIFL Finance had a consolidated Assets under Management (AUM) of Rs 71,410.19 crore, Gross NPA at 2.42%, and Net NPA at 1.01%. Notably, 71.92% of its consolidated loan book is secured by adequate collateral, helping to manage credit risk. The company operates through 4,858 branches across India and has a workforce of over 38,000 employees.

Lead managers to the issue include Trust Investment Advisors, Nuvama Wealth Management, and IIFL Capital Services. The NCDs, priced at a face value of Rs 1,000, have a minimum application size of Rs 10,000 and will be listed on both the BSE and NSE, with NSE designated as the primary stock exchange. The allotment will be done on a first-come, first-served basis, and the issue may close earlier than the scheduled date.