IIFL Finance board approves raising ₹2,000 crore through non-convertible debentures

IIFL Finance Ltd.'s Board of Directors has approved a public issue of secured, rated, listed, redeemable non-convertible debentures (NCDs) with a shelf limit of up to ₹2,000 crore, the company announced on Wednesday, November 26.

In a regulatory filing, the company said the issuance may be launched in one or more tranches, subject to all applicable statutory and regulatory approvals under the SEBI Regulations, 2021.

The board decided that the NCD issue will also include a green shoe option, which is a provision that allows an increase to the size of the  offering if investor demand is higher than expected.

IIFL Finance added that further details required under SEBI’s Master Circular on disclosure norms will be provided at the time of filing each tranche.

The financial services company reported a net profit of ₹376.3 crore

for the September quarter, compared to a loss of ₹157 crore in the same period last year, driven by lower provisions and steady loan growth. Net interest income (NII) rose 6.1% year-on-year to ₹1,439 crore from ₹1,355 crore.

Shares of IIFL Finance are trading 2.3% higher at ₹570.1, off the intraday high of ₹577.5. The stock has risen 13% in the last one month.