IIFL Finance Ltd. has opened its Tranche I Secured Non-Convertible Debentures (NCDs) in February 2026. With a base issue of ₹500 Cr and a tranche size of ₹2,000 Cr, these NCDs offer attractive yields up to 9% per annum and are designed to suit both retail and institutional investors.
This article goes beyond just numbers: we analyze the coupon structure, safety, historical performance, and investment strategy for potential investors.
Prospectus Link – IIFL Finance NCD Tranche I February 2026 NCD
IIFL Finance NCD Issue Overview
| Parameter | Details |
|---|---|
| Open Date | 17 Feb 2026 |
| Close Date | 4 Mar 2026 |
| Security Type | Secured, Redeemable NCDs |
| Tranche Issue Size | ₹2,000 Cr |
| Issue Price | ₹1,000 per NCD |
| Minimum Lot | 10 NCD |
| Listing | BSE, NSE |
| Basis of Allotment | FCFS |
| Trustee | Vardhman Trusteeship Pvt. Ltd. |
FCFS (First-Come, First-Served) Explained
The IIFL NCD Tranche I follows an FCFS allotment basis, meaning:
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Investors who apply earlier are given priority for allotment.
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Applications are accepted until the total issue size is fully subscribed, so timing is critical.
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If the demand exceeds supply quickly (oversubscription), the company may close the issue before the scheduled end date, ensuring only early applicants get allotted.
Minimum Investment Requirement
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The minimum lot size is 10 NCDs, priced at ₹1,000 each.
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This means the minimum investment to participate is ₹10,000.
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Investors can apply for multiples of 1 NCD beyond the minimum lot (market lot = 1 NCD).
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Means After 10,000 You Dont Need to invest Directly 20,000 You Can Invest 11,000 12,000 & So On
Credit Ratings
The IIFL Finance Tranche I NCDs have been rated by leading credit rating agencies as follows:
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Crisil Ratings Limited: AA (Stable)
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Brickwork Ratings Pvt. Ltd.: AA+ (Stable)
Investor Insight:
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The AA / AA+ rating indicates a high degree of safety for principal and interest payments, with very low credit risk. These NCDs are suitable even for risk-averse investors seeking reliable fixed income.
Understanding Ratings Around AA:
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Above AA: Ratings like AAA represent the highest safety, almost no credit risk. AA+ is just below AAA but still extremely safe.
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Below AA: Ratings like A+, A, BBB+ indicate moderate safety, with higher credit risk. Investors should be cautious with lower-rated NCDs, as the probability of default increases.
NCD Coupon Rates & Series Details
IIFL Finance Tranche I NCDs are designed to provide flexibility to investors depending on their income needs and investment horizon. The company offers three distinct interest payout options — monthly, annual, and cumulative — across 9 series, so investors can choose what suits their financial goals best.
| Series | Tenor | Interest Payout | Coupon Rate | Effective Yield | Maturity Value |
|---|---|---|---|---|---|
| 1 | 24 Months | Monthly | 8.37% | 8.70% | 1,000 |
| 2 | 36 Months | Monthly | 8.52% | 8.85% | 1,000 |
| 3 | 60 Months | Monthly | 8.65% | 9.00% | 1,000 |
| 4 | 24 Months | Annual | 8.70% | 8.69% | 1,000 |
| 5 | 36 Months | Annual | 8.85% | 8.84% | 1,000 |
| 6 | 60 Months | Annual | 9.00% | 8.99% | 1,000 |
| 7 | 24 Months | Cumulative | NA | 8.70% | 1,181 |
| 8 | 36 Months | Cumulative | NA | 8.85% | 1,290 |
| 9 | 60 Months | Cumulative | NA | 9.00% | 1,539 |
1. Monthly Interest Payout:
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Interest is paid every month, providing a steady stream of income.
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Ideal for investors who rely on regular cash flows for expenses or reinvestment.
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Example: Series 1, 2, 3 (Tenors: 24M, 36M, 60M)
2. Annual Interest Payout:
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Interest is credited once a year, combining convenience with moderate compounding.
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Suitable for investors who want yearly returns without monitoring monthly payments.
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Example: Series 4, 5, 6 (Tenors: 24M, 36M, 60M)
3. Cumulative Interest Payout:
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Interest is compounded and paid only at maturity, giving the highest effective yield among the three options.
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Perfect for long-term wealth creation, where investors do not need regular income.
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Example: Series 7, 8, 9 (Tenors: 24M, 36M, 60M)
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At maturity, the investor receives the principal plus all accumulated interest, which is significantly higher than the nominal coupon rate.
NCD Allocation
The IIFL Finance Tranche I NCDs are allocated across different investor categories to ensure fair participation
| Investor Category | Allocation % | NCDs Reserved |
|---|---|---|
| Institutional | 20% | 10,00,000 |
| Non-Institutional | 30% | 15,00,000 |
| HNI | 35% | 17,50,000 |
| Retail | 15% | 7,50,000 |
Company Promoters
Mr. Nirmal Bhanwarlal Jain and Mr. R. Venkatraman are the company promoters.
About IIFL Finance Ltd.
IIFL Finance Limited, established in 1995 and headquartered in Mumbai, is one of India’s leading non-banking financial companies (NBFCs). Over the past decades, it has built a strong presence in the Indian financial sector by offering diverse lending solutions tailored to the needs of individuals, businesses, and small-to-medium enterprises (SMEs). Its product portfolio includes home loans, gold loans, business loans, microfinance, and loans against securities, allowing it to cater to both urban and semi-urban markets effectively.
The company operates through a network of over 1,000 branches across India and employs more than 10,500 professionals, ensuring that financial services are accessible, efficient, and customer-focused. IIFL Finance has also expanded internationally, with operations in Canada, the United States, the United Kingdom, Singapore, Hong Kong, and the United Arab Emirates, reflecting its global ambition and capability to serve clients beyond India.
IIFL Finance has attracted backing from major investors, including Fairfax Financial Holdings, General Atlantic, and the UK government’s CDC Group, which speaks to its credibility, strong governance, and long-term growth potential. The company emphasizes flexible and inclusive lending, aiming to empower individuals and businesses by providing timely financial support, whether it’s for buying a home, expanding a business, or meeting personal liquidity needs.
With a combination of robust financial performance, strong investor confidence, and a customer-centric approach, IIFL Finance continues to be a trusted name in the NBFC sector, making its NCDs an attractive option for investors seeking high-rated, secure, and reliable fixed-income instruments.
Financial (Restated Consolidated)
| Period Ended | Assets (₹ Cr) | Revenue (₹ Cr) | Profit After Tax (₹ Cr) | Net Worth (₹ Cr) |
|---|---|---|---|---|
| 30 Sep 2024 | 55,372.41 | 5,201.98 | 245.09 | 11,867.93 |
| 31 Mar 2024 | 62,421.16 | 10,490.47 | 1,974.22 | 10,357.16 |
| 31 Mar 2023 | 53,001.32 | 8,447.11 | 1,607.55 | 8,790.50 |
| 31 Mar 2022 | 45,910.18 | 7,006.28 | 1,188.25 | 6,273.85 |
Objectives of the Issue
The proceeds from the NCD issue will be utilized for:
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Onward lending, financing, and refinancing the company’s existing debt.
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General corporate purposes including working capital requirements.
NCD Registrars & Lead Managers
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Registrar: MUFG Intime India Pvt. Ltd.
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Lead Managers:
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Trust Investment Advisors Pvt. Ltd.
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Nuvama Wealth Management Ltd.
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IIFL Capital Services Ltd.
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Investing in NCDs involves financial decisions that can impact your returns and risk exposure. It is highly recommended to consult a certified financial advisor before making any investment decision.
Disclaimer: This article is for informational purposes only and does not constitute a recommendation, offer, or solicitation to buy or sell any financial instrument. Investments in NCDs are subject to market risks, credit risk, and liquidity risk, and past performance is not indicative of future returns. Investors should carefully read the offer document and assess their own risk appetite before investing.
Watch Video Here About IIFL Finance NCD Tranche I February 2026
FAQs – IIFL Finance NCD Tranche I February 2026
1. What is IIFL Finance NCD Tranche I?
IIFL Finance NCD Tranche I February 2026 is a Secured, Redeemable, Non-Convertible Debenture (NCD) issue by IIFL Finance Ltd. “Secured” means the NCDs are backed by the company’s assets, providing extra safety to investors in case of default.
2. What are the issue open and close dates for IIFL Finance NCD?
The IIFL Finance NCD Tranche I opens on 17th February 2026 and closes on 4th March 2026. However, if the issue is oversubscribed early, the company may close the NCD issue before the scheduled date, so early application is recommended.
3. What is the minimum investment for IIFL Finance NCD?
The minimum investment for IIFL Finance NCD Tranche I is 10 NCDs, which equals ₹10,000. Investors can also apply in multiples of 1 NCD, so after ₹10,000, you can invest ₹11,000, ₹12,000 depending on your preference.
4. How is interest paid on IIFL Finance NCDs?
IIFL Finance NCDs provide flexible interest payout options:
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Monthly Series: Interest is paid every month for regular income.
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Annual Series: Interest is credited once a year.
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Cumulative Series: Interest is compounded and credited at maturity, meaning you receive principal + all accumulated interest at the end. Cumulative series is ideal for long-term investors seeking higher effective yield.
5. What does FCFS mean for IIFL Finance NCD allotment?
FCFS stands for First-Come, First-Served. For IIFL Finance NCD Tranche I, it means applications are processed in the order they are received, and early applicants have a higher chance of getting allotted, especially if the issue gets oversubscribed.
6. What is the credit rating of IIFL Finance NCDs?
The NCDs are rated AA by Crisil and AA+ by Brickwork, indicating a high degree of safety and very low credit risk. For cumulative series, the credit rating ensures that even long-term, compounded investments remain secure, giving investors confidence over the 24–60 months maturity period.
7. Where will IIFL Finance NCDs be listed?
The IIFL Finance NCD Tranche I will be listed on BSE and NSE, providing liquidity and the option to trade the NCDs after issuance, though investors should note that secondary market trading may depend on demand.
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