IIFL Finance NCD Market Update IIFL Finance Limited launched its Tranche I public issue of secured, redeemable non-convertible debentures (NCDs) today, February 17, 2026. The offering saw immediate market traction, with the **500 crore INR** base issue being fully subscribed within the first few hours of the opening bell. The company has the option to retain oversubscription up to a total of **2,000 crore INR** through a green-shoe mechanism. As of mid-afternoon today, total subscriptions reached **1.18 times** the base issue, driven heavily by institutional and non-institutional investors. Institutional demand led the surge at **2.00 times** their allotted quota, followed by non-institutional investors at **1.71 times**. Retail participation stood at **0.23 times**, with the issue scheduled to remain open until March 4, 2026, unless closed earlier due to high demand. Terms and Yield Structure The NCDs offer effective annual yields ranging from **8.70% to 10.25%**, significantly outpacing current standard bank fixed deposit rates. Investors can choose from tenors of **24, 36, and 60 months** with monthly, annual, or cumulative interest payout options. The highest yield of **10.25%** is available on the 60-month series. The minimum investment is set at **10,000 INR** (10 NCDs at 1,000 INR face value each), making it accessible to a broad retail base looking for fixed-income diversification. Financial Health and Ratings This debt raise is backed by a strong credit profile. CRISIL has assigned an **AA/Stable** rating, while Brickwork Ratings has provided an **AA+/Stable** outlook. These ratings indicate a high degree of safety regarding timely servicing of financial obligations. For the third quarter of FY26, IIFL Finance reported a profit after tax of **501.3 crore INR**, contributing to a nine-month profit of **1,193.5 crore INR**. The company’s consolidated Assets Under Management (AUM) reached **98,336 crore INR** as of December 31, 2025. Asset quality remains stable with Gross Non-Performing Assets (GNPA) at **1.60%** and Net NPAs at **0.75%**. Approximately **83.6%** of the total loan portfolio is secured by collateral, providing a safety net for debt holders. Market Context and Equity Performance On the equity side, IIFL Finance shares traded at **518.70 INR** today, marking a gain of approximately **4.75%** in the Tuesday session. The company currently holds a market capitalization of approximately **21,953 crore INR**. Proceeds from this NCD issue are earmarked for onward lending, refinancing existing debt, and general corporate purposes. This strategic move comes as the Indian NBFC sector is projected to hit **50 lakh crore INR** in assets by March 2027, with gold and MSME loans driving the current growth cycle.