IIFL Finance is coming up with a new protected NCD issue that will open on April 7, 2025. Investors looking for bond options may be seduced by attractive interest rates of up to 10.25% per year. But is this NCD a good bet given the current market and credit risk environment? In this article, I will review it IIFL Finance April 2025 NCD Issue Details cover its functionality, interest rates, risk factors, and whether investment or avoidance is required.
About IIFL Finance Limited
Founded in 1995, IIFL Finance Limited was formerly Infoline Finance Limited in India and is a diverse non-banking finance company (NBFC) headquartered in Mumbai, India.
The company offers a wide range of financial services, including mortgages, gold loans, business loans, microfinance and loans for securities.
IIFL Finance NCD – Details of April 2025 Questions
- NCD issues open: April 7, 2025
- NCD issues close: April 23, 2025
- Security Type: Protected, Redemptionable Non-Convertible Debts (NCDs)
- Face value/issue price: 1,000 pounds per NCD
- Basic Question Size: £100 crore
- Options to keep oversubscription: £400 crore
- list: Proposed on BSE and NSE
- Assignment Base: The first serve comes
- Minimum investment: 10 NCDS IE£10,000
- Registrar: KFIN Technologies Ltd
- Debenture Trustee: Vardhman Tristeeship Pvt Ltd
IIFL Finance NCD – Tranche Interest Rates for April 2025
These NCDs offer multiple options for tenures of 15, 24, 36, and 60 months. Interest payment modes include monthly, annual and cumulative.
| series | Tenure period | Frequency of interest | Coupon rate | Effective yield | Maturity (£) |
|---|---|---|---|---|---|
| I | 15 months | Year | 9.00% | 9.06% | £1,000 |
| ii | 15 months | Cumulative | Na | 9.00% | £1,113.67 |
| iii | 24 months | Year | 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 | Year | 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 | Year | 10.25% | 10.24% | £1,000 |
NCD Credit Rating
These NCDs are stable from Crisil to Crisil AA/Stable from ICRA to ICRA AA (stable). Equipment with this rating is considered to be highly safe with very low credit risk.
Objects in NCD Problems
We propose to use the net income from this issue to:
- Loans, funds, and repayments of existing borrowings. and
- General business purposes.
Why invest in IIFL Finance NCD in April 2025?
- Attractive interest rates – Offering up to 10.25% PA, these NCDs offer significantly better returns compared to bank FDs.
- Safe instrument – These are protected corporate bonds backed by the company’s assets, reducing the risk of default.
- High credit rating – Double “AA” ratings show strong credibility quality.
- Flexible Tenure and Interest Options – Choose from monthly, annual, or cumulative interest options based on your cash flow needs.
- Strong parents and children – Supported by the IIFL Group and highly reputable institutional investors.
Would you like to invest in these NCDs?
- Risks in the NBFC sector – NBFCs face higher credit risk, especially during times of market uncertainty and economic downturn.
- Liquidity risk -Although listed, NCD has limited liquidity on the stock exchange.
- Interest rate risk – If interest rates rise in the future, these NCDs may seem unattractive.
- There is no tax benefit – Interest income is fully taxed according to your income slab.
- Investors are IIFL Finance APR-2025 NCD Prospectus.
How do I apply for IIFL Finance NCD?
These NCDs can only be applied in Demat mode via the following modes:
- online Through net banking/stock brokering platforms such as Zerodha, Upstox, ICICI Direct.
- off-line Through designated collection centres by submitting the completed application with a check.
Make sure you apply early as the allocation is first come first served.
Should I invest in IIFL Finance NCD in April 2025?
IIFL Finance April 2025 NCD brings attractive yields up to 10.25% with high credit ratings and protected backing. Investors looking for bond investments with higher returns than bank FDs can consider investing in this NCD issue, especially under the retail category with a 30% allocation.
However, you must recognize the risks inherent in the NBFC sector and invest only a portion of your portfolio in such equipment. Those in higher tax brackets may consider cumulative options to defer tax obligations. Conservative investors who can’t consume risk should stay away.
Medium to high risk investors can invest in this NCD problem for normal income or long-term cumulative options.
April 2025 FAQ on IIFL Finance for NCD Issues
- What are the opening and closing dates for IIFL Finance NCD in April 2025?
This issue begins on April 7, 2025 and ends on April 23, 2025. - Is this NCD protected or not?
These are protected NCDs backed by the company’s assets. - What is the minimum investment required?
The minimum investment is £10,000 (10 ncds of £1,000 each). - What is the credit rating assigned to this NCD?
Stable with ICRA with Crisil AA/CRISIL and ICRA AA (stable). - How do I receive interest payments?
Depending on the options selected, interest will be paid monthly, annually or cumulatively. - Are there any tax benefits to investing in this NCD?
No, there is no tax benefit. Interest income is taxable. - Can I finish before maturity?
Yes, these NCDs are listed on BSE and NSE, but liquidity may be limited.
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