IIFL Finance is coming up with a new Secured NCD issue that opens on April 7, 2025. Investors looking for fixed income options may be tempted by the attractive interest rates up to 10.25% per annum. But is this NCD a good bet considering the current market and credit risk environment? In this article, we’ll review IIFL Finance April 2025 NCD Issue in detail – covering its features, interest rates, risk factors, and whether you should invest or avoid.
About IIFL Finance Limited
Established in 1995, IIFL Finance Limited, formerly India Infoline Finance Limited, is a diversified non-banking financial company (NBFC) headquartered in Mumbai, India.
The company offers a wide range of financial services, including home loans, gold loans, business loans, microfinance, and loans against securities.
IIFL Finance NCD – April 2025 Issue Details
- NCD Issue Opens: April 7, 2025
- NCD Issue Closes: April 23, 2025
- Security Type: Secured, Redeemable Non-Convertible Debentures (NCDs)
- Face Value / Issue Price: ₹1,000 per NCD
- Base Issue Size: ₹100 Crores
- Option to Retain Oversubscription: ₹400 Crores
- Listing: Proposed on BSE and NSE
- Allotment Basis: First come first serve
- Minimum Investment: 10 NCDs i.e. ₹10,000
- Registrar: KFin Technologies Ltd
- Debenture Trustee: Vardhman Trusteeship Pvt Ltd
IIFL Finance NCD – Interest Rates for April 2025 Tranche
These NCDs offer multiple options with tenures of 15, 24, 36, and 60 months. Interest payment modes include Monthly, Annual, and Cumulative.
| Series | Tenure | Interest Frequency | Coupon Rate | Effective Yield | Maturity Amount (₹) |
|---|---|---|---|---|---|
| I | 15 Months | Annual | 9.00% | 9.06% | ₹1,000 |
| II | 15 Months | Cumulative | NA | 9.00% | ₹1,113.67 |
| III | 24 Months | Annual | 9.30% | 9.30% | ₹1,000 |
| IV | 24 Months | Cumulative | NA | 9.30% | ₹1,194.65 |
| V | 36 Months | Monthly | 9.35% | 9.76% | ₹1,000 |
| VI | 36 Months | Annual | 9.75% | 9.74% | ₹1,000 |
| VII | 36 Months | Cumulative | NA | 9.75% | ₹1,322.28 |
| VIII | 60 Months | Monthly | 9.60% | 10.03% | ₹1,000 |
| IX | 60 Months | Annual | 10.25% | 10.24% | ₹1,000 |
Credit Ratings of the NCDs
These NCDs have received CRISIL AA/Stable from CRISIL and ICRA AA (Stable) from ICRA. Instruments with this rating are considered to have a high degree of safety with very low credit risk.
Objects of the NCD Issue
The company proposes to utilize the net proceeds from this issue for:
- Onward lending, financing, and repayment of existing borrowings; and
- General corporate purposes.
Why to invest in IIFL Finance NCD April 2025?
- Attractive Interest Rates – Offering up to 10.25% p.a., these NCDs provide significantly better returns compared to bank FDs.
- Secured Instruments – These are secured debentures backed by the company’s assets, reducing default risk.
- High Credit Ratings – Double ‘AA’ ratings indicate strong credit quality.
- Flexible Tenures and Interest Options – Choose between monthly, annual, or cumulative interest options based on your cash flow needs.
- Strong Parentage – Backed by IIFL Group and reputed institutional investors.
Why not to invest in these NCDs?
- NBFC Sector Risk – NBFCs face higher credit risk, especially in times of market uncertainty or economic downturns.
- Liquidity Risk – Even though listed, NCDs have limited liquidity on stock exchanges.
- Interest Rate Risk – If interest rates go up in the future, these NCDs might seem less attractive.
- No Tax Benefit – Interest income is fully taxable as per your income slab.
- Investors should go through all internal and external risk factors in IIFL Finance Apr-2025 NCD prospectus.
How to apply for IIFL Finance NCD?
You can apply for these NCDs in demat mode only through the following modes:
- Online via your net banking/stock broking platforms like Zerodha, Upstox, ICICI Direct, etc.
- Offline through designated collection centers by submitting the filled application form along with a cheque.
Ensure that you apply early as allotment is on a first come, first served basis.
Should you invest in IIFL Finance NCD April 2025?
IIFL Finance April 2025 NCDs offer attractive yields up to 10.25% with high credit ratings and secured backing. Investors who are looking for fixed income investments with higher returns than bank FDs can consider investing in this NCD issue, especially under the retail category, which has a 30% allocation.
However, one should be aware of NBFC sector-specific risks and invest only a portion of their portfolio in such instruments. Those in higher tax brackets may consider cumulative options to defer tax liability. Conservative investors who cannot digest risk should stay away.
Moderate to high-risk investors can invest in this NCD issue for regular income or long-term cumulative options.
FAQs about IIFL Finance April 2025 NCD Issue
- What is the issue open and close date for IIFL Finance NCD April 2025?
The issue opens on April 7, 2025, and closes on April 23, 2025. - Is this NCD secured or unsecured?
These are secured NCDs, backed by assets of the company. - What is the minimum investment required?
The minimum investment is ₹10,000 (10 NCDs of ₹1,000 each). - What are the credit ratings assigned to this NCD?
CRISIL AA/Stable by CRISIL and ICRA AA (Stable) by ICRA. - How will I receive the interest payments?
Interest will be paid either monthly, annually, or cumulatively, depending on the chosen option. - Is there any tax benefit for investing in this NCD?
No, there is no tax benefit. Interest income is taxable. - Can I exit before maturity?
Yes, these NCDs are listed on BSE and NSE, but liquidity might be limited.
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