Non-Convertible Debentures (NCDs) have become a preferred investment option among investors seeking predictable returns and regular income. The latest offering, ICL Fincorp NCD November 2025, has generated attention due to its high effective yields of up to 12.68% and a wide range of tenures suited for varying investor needs. As a gold-loan focused NBFC with a growing branch network, ICL Fincorp aims to utilise the issue proceeds for onward lending and repayment of existing borrowings. In this review, we cover complete details of the issue including interest rates, company background, credit rating, financial performance, reasons to invest, risks, and expert conclusions to help you assess whether this NCD issue is suitable for your investment portfolio.
About ICL Fincorp Limited
ICL Fincorp Limited is a non-deposit-taking NBFC primarily engaged in the gold loan business. It provides loans against household gold jewellery across multiple states including Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, Odisha, Gujarat and Maharashtra.
The company also offers business loans, personal loans and property loans. ICL highlights operational efficiency, customer onboarding speed, and its strong ground team as key factors behind its expanding customer base. As of September 30, 2025, the company operates 300 branches across 10 states and employs 1,433 staff, of which nearly 59% are women.
Its AUM has been steadily rising — from ₹39,60,925.89K in 2023 to ₹69,29,832.03K for Q1 FY2025 — supporting the overall business expansion.
ICL Fincorp NCD November 2025 – Issue Details
Issue Opens: November 17, 2025
Issue Closes: November 28, 2025
Security Type: Secured, Redeemable NCDs
Issue Size (Base): ₹50 Crores
Issue Size (Oversubscription): ₹50 Crores
Total Issue Size: ₹100 Crores
Face Value: ₹1,000 per NCD
Issue Price: ₹1,000 per NCD
Minimum Lot Size: 10 NCDs
Listing: BSE
Allotment Basis: First-Come First-Serve
NCD Allocation
- Institutional: 5%
- Non-Institutional: 1%
- HNI: 30%
- Retail: 64%
ICL Fincorp NCD – Interest Rates
The issue offers ten series with monthly, annual, and cumulative interest options. Important details:
| Series | Tenure | Interest Frequency | Coupon Rate | Effective Yield | Maturity Amount |
|---|---|---|---|---|---|
| 1 | 13 Months | Monthly | 10.50% | 11.02% | ₹1,000 |
| 2 | 24 Months | Monthly | 11.00% | 11.57% | ₹1,000 |
| 3 | 36 Months | Monthly | 11.50% | 12.13% | ₹1,000 |
| 4 | 60 Months | Monthly | 12.00% | 12.68% | ₹1,000 |
| 5 | 13 Months | Cumulative | NA | 11.00% | ₹1,119.70 |
| 6 | 24 Months | Cumulative | NA | 11.50% | ₹1,243.23 |
| 7 | 36 Months | Cumulative | NA | 12.00% | ₹1,404.93 |
| 8 | 24 Months | Annual | 11.25% | 11.25% | ₹1,000 |
| 9 | 36 Months | Annual | 11.75% | 11.75% | ₹1,000 |
| 10 | 70 Months | Cumulative | NA | 12.62% | ₹2,000 |
The highest effective yield is 12.68% for the 60-month monthly interest option.
Credit Rating
The NCDs are rated CRISIL BBB-/Stable, indicating a moderate degree of safety and moderate credit risk. This rating reflects the company’s exposure to gold price volatility and regional concentration of branches.
Objects of the Issue
ICL Fincorp plans to utilise the proceeds for:
- Onward lending and financing activities
- Repayment / prepayment of existing borrowings
- General corporate purposes
Company Financials (₹ in Crores)
The company has shown strong growth in revenue and profitability.
| Particulars | FY 2024 | FY 2025 |
|---|---|---|
| Total Income | 145.69 | 191.69 |
| PAT | 0.08 | 2.44 |
| Net Worth | 85.12 | 110.07 |
| Reserves | 32.53 | 45.11 |
| Borrowings | 54.32 | 87.63 |
| Assets | 637.95 | 852.92 |
PAT rose significantly by 2925% in FY 2025, mainly due to better asset quality and improved interest spreads.
Why to Invest in ICL Fincorp NCDs?
1. Attractive Returns up to 12.68%
The yields offered are significantly higher than bank FDs and comparable NBFC NCDs.
2. Secured NCDs
The debentures are backed by a first-ranking pari-passu charge on the company’s assets.
3. Steady Growth in Business
AUM and branch expansion have been consistent.
4. Multiple Interest Payment Options
Monthly, annual, and cumulative options give flexibility to investors.
5. Retail-Friendly Allocation
64% of the issue is reserved for retail investors.
Why Not to Invest?
1. Low Credit Rating (BBB-)
Investors should be aware that BBB- is just one notch above non-investment grade.
2. Concentration in Gold Loan Business
Gold prices are volatile and can impact profitability.
3. Regional Concentration Risk
Majority of branches are in South India, which exposes the company to localised risks.
4. NBFC Sector Risks
NBFCs face liquidity pressure during economic disruptions.
How to Apply?
Investors can apply through:
- ASBA via net banking
- Through brokers and trading platforms such as Zerodha, Upstox
- Physical applications through designated centres
Demat account is mandatory since the NCDs are issued only in dematerialised form.
Conclusion – Should You Invest?
ICL Fincorp NCD November 2025 offers high returns, secured structure, and flexible options, making it suitable for investors seeking predictable income. However, the BBB- credit rating and exposure to gold-loan risk require careful consideration.
These NCDs may be appropriate for high-risk investors, especially those diversifying their debt portfolios into high-yield instruments. Other investors may prefer higher-rated (A or AA category) NCDs.
FAQs
1. Is ICL Fincorp NCD safe to invest?
The NCDs are secured but rated BBB-, indicating moderate credit risk.
2. What is the minimum investment?
Minimum investment is 10 NCDs = ₹10,000.
3. Can NRIs invest?
No, NRIs are not eligible.
4. How will interest be paid?
Depending on the series chosen – monthly, annual, or cumulative.
5. Are these NCDs listed?
Yes, the NCDs will be listed on BSE.
6. What is the highest return offered?
The highest effective yield is 12.68% for the 60-month monthly interest option.
7. Is demat account compulsory?
Yes, NCDs are issued only in dematerialised mode.
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