IIFL Finance to raise up to Rs 2,000 crore via debentures; stock jumps 4% today

Shares of IIFL Finance climbed 4 per cent in Wednesday’s trade after the company’s board cleared a major fund-raise through non-convertible debentures (NCDs).

The IIFL stock rose as much as 3.58 per cent to the day’s high of Rs 577.05 on the BSE against its previous close of Rs 557.05 apiece. At last check, the counter was trading 2.45 per cent higher at Rs 570.70.

In a stock exchange filing, the company said its board has approved a public issue of secured, rated, listed, redeemable non-convertible debentures with a shelf limit of up to Rs 2,000 crore, including a green shoe option, in one or more tranches, subject to regulatory approvals. 

The company stated that further details, as required under SEBI regulations, will be provided at the time of filing the relevant tranche documents.

Earlier on November 1, brokerage Motilal Oswal Financial Services Ltd (MOFSL) reiterated its ‘Buy’ rating on IIFL Finance with a target price of Rs 635. The brokerage highlighted strong momentum in the gold loan segment, a rising off-book share and expectations of moderated credit costs in the second half of FY26. 

IIFL Finance, one of India’s prominent retail-focused diversified NBFCs, delivered a strong showing for the quarter ended September 30, 2023. The company’s consolidated profit after tax surged to Rs 417.94 crore, marking a sharp 61 per cent sequential rise and reflecting broad-based improvement across its lending portfolio.