IIFL Finance has announced plans to raise fresh capital through a public issuance of secured non-convertible debentures (NCDs), signalling its intent to strengthen its lending operations and support future business expansion.
Board Gives Green Light for Fundraising Plan
The company’s Board has approved a proposal to issue secured, rated, listed and redeemable NCDs with a total borrowing capacity of up to ₹2,000 crore, including a green-shoe component. The fundraise may be executed in multiple phases, with details of each tranche to be disclosed closer to launch.
This structure offers the flexibility to raise funds based on market conditions, investor appetite and business requirements.
Strong Q2FY26 Performance Supports Growth Outlook
IIFL Finance delivered solid financial results in the second quarter of FY26, reporting a consolidated profit of ₹418 crore, representing a 52% quarter-on-quarter increase. The sharp recovery was largely driven by renewed momentum in its gold loan business.
The lender’s assets under management (AUM) expanded to ₹90,122 crore, reflecting a 7% sequential rise. Its gold loan portfolio touched a record ₹34,577 crore, accelerating 220% year-on-year, following full operational resumption after the September 2024 regulatory pause.
Asset quality also improved during the quarter, with declines in Stage 2 and Stage 3 exposures, supported by a strong 93% provision coverage ratio. The company continued to rebalance its loan mix by reducing exposure to riskier unsecured MSME, micro-LAP and microfinance portfolios.
Strategic Focus and Market Positioning
IIFL Finance continues to focus on collateral-backed retail lending, spanning gold loans, home finance, and secured MSME credit. The company has been strengthening its AI-enabled risk frameworks and expanding its phygital distribution network, now comprising around 4,800 branches.
Together with subsidiaries IIFL Home Finance and IIFL Samasta Finance, the group now serves a customer base exceeding 4.6 million borrowers across India.
Summary
The approval of a ₹2,000 crore NCD issuance positions IIFL Finance to strengthen liquidity, support loan book expansion and deepen its retail lending franchise. Backed by strong financial recovery, improving asset quality and a sharply growing gold loan business, the company is preparing for its next phase of growth with a strategic emphasis on secured, technology-driven lending.
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