Mumbai-based non-banking financial company (NBFC) IIFL Finance Ltd is set to raise up to ₹600 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis, the company said in a regulatory filing on Tuesday.The fundraise is aimed at augmenting long-term resources and supporting the company’s growing lending book. IIFL Finance has been steadily increasing its focus on retail lending, particularly in gold loans, home finance, and business loans.
“The Board of Directors of the company has approved the issuance of secured redeemable NCDs, aggregating up to ₹600 crore, in one or more tranches,” the statement read. The issue will be subject to market conditions and necessary approvals.
Also Read: IIFL Finance Q4 profit falls YoY, but witnesses sequential reboundThis move is expected to help the company optimise its funding cost while maintaining a healthy asset-liability mix. NCDs, being fixed-income instruments, offer companies like IIFL a predictable source of capital without diluting equity.As of market close today, shares of IIFL Finance Ltd stood at ₹481.35, down ₹6.00 or 1.23% on the BSE.
