IIFL Finance Raises ₹100 Crore Through Perpetual Bonds; Shares Slip Nearly 3%

Mumbai, May 29: IIFL Finance Ltd. has strengthened its capital base by raising ₹100 crore through perpetual non-convertible debentures (NCDs), a fundraising move aimed at securing stable, long-term funding for its expanding lending operations.

The company informed stock exchanges that its Finance Committee approved the allotment of 100 listed, rated and unsecured perpetual NCDs through a private placement on May 29. Each debenture carries a face value of ₹1 crore, taking the total issue size to ₹100 crore.

The bonds offer investors an annual coupon of 9.90% and will be listed on the National Stock Exchange. The first interest payment is scheduled for May 29, 2027.

What makes these instruments different from regular bonds is that they do not have a fixed maturity date. Instead, they remain outstanding indefinitely unless the company chooses to redeem them. In IIFL Finance’s case, a call option can be exercised after 10 years, subject to regulatory approval from the Reserve Bank of India.

A Strategic Move, Not Just Another Debt Raise

For a lending company, access to capital is the fuel that drives growth.

As loan demand continues across segments such as gold loans, home finance, business lending and microfinance, financial institutions need funding sources that are both reliable and diversified. Perpetual bonds serve exactly that purpose.

Unlike short-term borrowings that require frequent refinancing, perpetual instruments provide long-duration capital and help reduce funding pressure. They also give lenders greater flexibility in managing their balance sheets while supporting future expansion plans.

The latest issuance signals that IIFL Finance continues to enjoy access to capital markets despite a competitive and evolving lending landscape.

Stock Market Snapshot

While the fundraising strengthens the company’s financial position, investors appeared focused on broader market trends rather than the announcement itself.

IIFL Finance Ltd. share price  were trading at ₹465.00 as of 3:25 p.m. IST on May 29, down 2.79% from the previous close of ₹478.35.

The stock opened at ₹480.40 and climbed to ₹483.55 before witnessing sustained selling pressure. It later touched a low of ₹462.65 and remained near those levels through the afternoon session.

The decline suggests that the market viewed the bond issuance as a routine capital management exercise rather than a near-term earnings catalyst.

Why Investors Should Watch Funding Mix

For NBFCs, the quality of funding is often just as important as the growth of the loan book.

Companies that maintain diversified funding sources are generally better positioned to navigate interest-rate cycles, liquidity fluctuations and periods of market volatility. Perpetual debt is particularly useful because it provides capital without creating immediate repayment obligations.

As regulators continue to emphasize stronger balance sheets and prudent capital management, access to instruments such as perpetual bonds can become a competitive advantage for large lenders.

About IIFL Finance

IIFL Finance Ltd. is one of India’s established non-banking financial companies, offering products across gold loans, home loans, business finance, microfinance and capital market lending.

The company serves millions of customers through an extensive branch network and digital platforms, with lending activities spread across both urban and rural markets.

Over the years, IIFL Finance has actively diversified its borrowing profile through bank funding, market borrowings and debt issuances to support business growth.

Conclusion

The ₹100 crore perpetual bond issuance may not grab headlines like a major acquisition or large order win, but it represents an important step in strengthening IIFL Finance’s long-term funding framework.

Although the stock ended the day lower, the fundraising provides additional financial flexibility and reinforces the company’s ability to support future lending growth without immediate refinancing pressure. For investors, it is another sign of the company’s continued focus on maintaining a balanced and resilient capital structure.

Source:

• https://www.nseindia.com/get-quote/equity/IIFL/IIFL-Finance-Limited
• https://nsearchives.nseindia.com/corporate/IIFL_29052026133744_AllotmentNCDIntimation.pdf