IIFL Finance to raise Rs 2,000 crore through bonds; offers up to 9% yield per annum

IIFL Finance Limited has announced the launch of a public issue of secured redeemable non-convertible debentures (NCDs) opening on Tuesday, February 17, 2026, with an issue size of Rs 500 crore and a green-shoe option to retain oversubscription up to Rs 1,500 crore, aggregating to a total of Rs 2,000 crore. The funds raised will be utilised for business growth and capital augmentation.

The NCDs offer an effective yield of up to 9 per cent per annum, with investment tenors of 24 months, 36 months, and 60 months. Investors can choose from multiple interest payment options, including monthly, annual, and cumulative (at maturity).

The proposed issue has been rated CRISIL AA/Stable by CRISIL Ratings and BWR AA+ (Stable) by Brickwork Ratings, reflecting a high degree of safety regarding the timely servicing of financial obligations and indicating very low credit risk.

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Commenting on the issue, 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. The proposed fund raise will enable us to expand credit access further while diversifying our funding sources. Over the years, IIFL Finance has built a strong track record of raising funds through bonds and ensuring timely repayment of principal and interest."

As of December 31, 2025, IIFL Finance reported consolidated loan assets under management (AUM) of Rs 98,336 crore. The company continues to maintain strong asset quality. The Company has Gross Non Performing Asset (NPA) of 1.60 per cent and Net NPA of 0.75 per cent as a percentage of its consolidated Loan Book as on December 31, 2025. Additionally, as of December 31, 2025, 83.61 per cent of the Company’s consolidated Loan Book was secured with adequate collaterals which helps mitigate risks further.

For Q3 FY26, the company reported a profit after tax (PAT) of Rs 501.3 crore, up 514 per cent year-on-year, while PAT for the nine months ended FY26 stood at Rs 1,193.5 crore, reflecting a growth of 265 per cent year-on-year. The company maintains strong relationships with multiple banks and financial institutions to support its funding strategy.

As of December 31, 2025, on a consolidated basis, the Company has a widespread network of 4,761 branches spanning the length and breadth of the country and has a strong workforce of 36,786 employees.

The lead managers of the issue are Trust Investment Advisors Private Limited, Nuvama Wealth Management Limited, and IIFL Capital Services Limited. The NCDs are proposed to be listed on BSE Limited and the National Stock Exchange of India Limited to provide liquidity to investors.

The NCDs will be issued at a face value of Rs 1,000 each, with a minimum application size of Rs 10,000 across investor categories. The public issue opens on Tuesday, February 17, 2026, and closes on Wednesday, March 4, 2026, with an option for early closure. Allotment will be on a first-come, first-served basis.