ICL Fincorp Limited has come out with its February 2026 NCD issue offering interest rates of up to 11.5% per annum. In a market where bank fixed deposits generally offer lower rates, such NCDs often attract income-seeking investors. However, returns should always be evaluated along with credit rating, company fundamentals, and risk factors. In this article, let us review the ICL Fincorp NCD February 2026 issue details, interest rates, financials, credit rating, and whether investors should invest or avoid.
About ICL Fincorp Limited
ICL Fincorp Limited is a non-deposit-taking NBFC operating primarily in the gold loan segment. The company provides loans against household gold jewellery to middle-class individuals. Apart from gold loans, it also offers property loans, business loans, and personal loans.
The company operates a branch network across several states, including Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Odisha, Gujarat, and others. As of December 2025, it had more than 300 branches.
ICL Fincorp is registered with the RBI as a non-deposit-taking NBFC and focuses largely on secured lending through gold loans.
ICL Fincorp NCD February 2026 – Issue Details
- Issue opening date: February 5, 2026
- Issue closing date: February 18, 2026
- Issue size: ₹50 crore (base) with ₹50 crore oversubscription option
- Total issue size: ₹100 crore
- Face value: ₹1,000 per NCD
- Minimum investment: ₹10,000 (10 NCDs)
- Listing: BSE
- Allotment: First-come-first-serve basis
Interest Rates and Tenure
The NCD issue offers multiple series with monthly, annual, and cumulative options.
Key interest rate highlights:
- Tenure: 13 months to 72 months
- Coupon rates: 10.00% to 11.50% per annum
- Effective yields: Up to 12.25% per annum
The highest interest is available in longer tenure options.
| Details | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 | Series 9 | Series 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Monthly | Monthly | Monthly | Monthly | Cumulative | Cumulative | Cumulative | Annual | Annual | Cumulative |
| Tenor | 13 Months | 24 Months | 36 Months | 60 Months | 13 Months | 24 Months | 36 Months | 24 Months | 36 Months | 72 Months |
| Coupon (% per Annum) | 10.0% | 10.5% | 11.0% | 11.5% | NA | NA | NA | 10.8% | 11.3% | NA |
| Effective Yield (% per Annum) | 10.5% | 11.0% | 11.6% | 12.1% | 10.5% | 11.0% | 11.5% | 10.8% | 11.3% | 12.3% |
| Amount on Maturity (In ₹.) | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,114.23 | 1,232.10 | 1,386.20 | 1,000.00 | 1,000.00 | 2,000.00 |
Credit Rating
- Rating agency: CRISIL
- Rating: BBB-
- Outlook: Stable
This indicates a moderate degree of safety and moderate credit risk. Investors should note that BBB- is considered the lowest investment-grade rating, which carries higher risk compared to AA or AAA rated NCDs.
Credit Rating Trend Over the Last 3–5 Years
One of the important factors while evaluating NCDs is the credit rating trend. A stable or improving rating over time generally indicates strengthening fundamentals, while a downgrade may signal higher risk.
As per the rating history disclosed in the prospectus, the trend for ICL Fincorp’s long-term debt instruments is as follows:
| Year | Credit Rating | Remarks |
|---|---|---|
| 2022 | BB- / Stable | Sub-investment grade rating |
| 2023 | Withdrawn | Rating withdrawn during the year |
| 2024 | BBB- / Stable | Upgraded to investment grade |
| 2025 | BBB- / Stable | Rating reaffirmed |
Key observations on rating trend
- The company had a BB- rating in 2022, which is below investment grade.
- The rating was later upgraded to BBB- in 2024, indicating an improvement in credit profile.
- The BBB- rating was reaffirmed in 2025, showing stability in the credit outlook.
- The prospectus also indicates that some agencies earlier classified the company as non-cooperative due to non-submission of information.
Overall, the rating trend shows improvement from sub-investment grade to investment grade in recent years.
Objects of the Issue
The company proposes to use the funds for:
- Onward lending activities
- Repayment or prepayment of existing borrowings
- General corporate purposes
This is typical for NBFC NCD issues where funds are used to support lending operations.
Company Financials
(₹ in Crore)
| Particulars | FY2025 | FY2024 | FY2023 |
|---|---|---|---|
| Assets | 852.92 | 637.95 | 527.66 |
| Total Income | 191.69 | 145.69 | 112.64 |
| Profit After Tax | 2.44 | 0.08 | 3.04 |
| Net Worth | 104.49 | 83.30 | 78.32 |
Financial observations
- Assets and income have grown steadily over the last three years.
- Profitability has been inconsistent.
- Net worth has improved, indicating gradual capital strengthening.
Why to Invest in ICL Fincorp NCD
- Offers high interest rates up to 11.5% per annum.
- Secured NCDs backed by company assets.
- Multiple interest payment options—monthly, annual, and cumulative.
- Listing on BSE provides liquidity before maturity.
- Growing asset base and branch network.
Why Not to Invest in ICL Fincorp NCD
- Credit rating of BBB- indicates HIGH risk.
- Profit levels are relatively low compared to asset size.
- NBFC business is sensitive to interest rates and economic cycles.
- Gold loan business depends on gold prices and customer repayment patterns.
- Regional concentration risk in southern India.
How to Apply for ICL Fincorp NCD
Investors can apply through the following methods:
Through net banking (ASBA)
- Log in to your bank net-banking account.
- Go to the IPO/NCD section.
- Select ICL Fincorp NCD.
- Choose the desired series and quantity.
- Submit the application.
Through brokers or online bond platforms
Investors can also apply through:
- Stock brokers with ASBA facility
- Online bond platforms
- UPI-based applications (for eligible investment amounts)
Minimum investment is ₹10,000.
Should You Invest in ICL Fincorp NCD February 2026?
ICL Fincorp NCD offers attractive interest rates compared to bank fixed deposits and some other debt instruments. However, the credit rating is only BBB-, which indicates high credit risk.
The rating trend shows improvement from BB- in 2022 to BBB- in 2024 and 2025. While this is a positive sign, the rating still remains at the lower end of investment grade.
This issue may suit:
- Investors seeking higher fixed income
- Investors willing to take very high credit risk
- Investors who can hold till maturity
Moderate or Conservative investors or those looking for safer debt options may prefer AA or AAA-rated NCDs or bank deposits.
FAQs
1. What is the interest rate offered in ICL Fincorp NCD February 2026?
The NCD offers interest rates ranging from 10.00% to 11.50% per annum.
2. What is the credit rating of this NCD?
The issue is rated CRISIL BBB- with a stable outlook.
3. What is the minimum investment amount?
The minimum investment is ₹10,000 (10 NCDs).
4. Are these NCDs secured?
Yes, these are secured, redeemable NCDs.
5. Where will these NCDs be listed?
They are proposed to be listed on the BSE.
6. Can I sell these NCDs before maturity?
Yes, you can sell them on the stock exchange after listing, subject to market liquidity.
7. Who should invest in this NCD?
Investors seeking higher fixed income and who are comfortable with moderate credit risk.
- ICL Fincorp NCD February 2026 – Issue Details, Interest Rates, Ratings and Review - February 5, 2026
- Aye Finance IPO Review, Issue Details, GMP, Analysis – Should You Invest or Avoid? - February 4, 2026
- Muthoot Fincorp NCD February-2026 – Issue Details, Interest Rates, Ratings and Review - February 2, 2026