IIFL Finance Ltd

Stock Option Grant

• NRC approved grant of 7,00,000 stock options under ESOP 2008.
• Options vest after a minimum one-year period per the grant schedule and letters.

Target background and deal terms

• Target: India Infoline Foundation, the CSR arm of the IIFL Group.
• Entity type: Section 8 company limited by guarantee, no share capital.
• Turnover: Rs 35.50 crore in FY2025-26.
• Industry: CSR and social development initiatives in India.
• Rationale: internal restructuring within IIFL Group; transfer from IIFL Capital Services to IIFL Finance.
• Related party: Yes; promoter/group interest via IIFL Capital Services.
• Consideration: non-cash; IIFL Finance to contribute the guaranteed amount.
• Cost: not applicable; no purchase price.
• Ownership: not applicable; no shares involved.
• Timeline: upon execution of definitive documents and regulatory approvals.
• Background: CSR initiatives across health, education, environment; incorporated 18 Feb 2014; India presence.
• Turnover history: 2025-26 Rs 35.50 crore; 2024-25 Rs 50.03 crore; 2023-24 Rs 29.54 crore.

Business overview

• Retail-focused NBFC offering gold, home, MSME, microfinance; expanding secured lending and co-lending.
• AI-led operating model, bank partnerships, Bharat & MSME expansion.

Key operational highlights

• AUM crossed ₹1.24 lakh Cr; ROA 3.1%, ROE 20.8%.
• Gold loan AUM rose 90% YoY to ₹65,729 Cr.
• Fitch upgraded IDR to BB-; tokenised ₹25 Cr bond issued.
• CRISIL ESG ratings assigned: ESG 66; Core ESG 70.

Financial performance

• Total income ₹2,339.6 Cr; YoY +23%.
• PPOP ₹1,355.1 Cr; YoY +31%.
• PBT ₹1,073.7 Cr; YoY +93%.
• PAT (pre-NCI) ₹805.0 Cr; YoY +93%.
• Consolidated loan AUM ₹124,268 Cr; QoQ +8%; YoY +38%.
• GNPA 1.5%; NNPA 0.9% QoQ.
• ROA 3.1%; ROE 20.8% (annualized).
• Book value per share ₹351.5.
• Liquidity ₹13,805 Cr; Consolidated CRAR 23.5%.

Capital structure & liquidity

• Consolidated CRAR 23.5%.
• Liquidity ₹13,805 Cr.
• Off-book co-lending/assignment ₹42,796 Cr (34% of AUM).
• Equity raise planned subject to shareholder approval.

Strategic priorities & outlook

• Resilient, capital-efficient growth; secured lending and partnerships.
• AI-led productivity, risk management, and branch-based distribution.
• Expand co-lending with banks; Bharat & MSME expansion.
• FY27 targets: growth; equity raise; scale secured lending and partnerships.

Risks & mitigation

• Asset quality remains healthy; GNPA 1.5% and NNPA 0.9% QoQ.
• Mitigation: AI-based underwriting, collections, fraud detection, and risk controls.

Governance & leadership

• Fitch upgrade and ESG ratings reflect strengthened governance.
• Board oversight with ESG Committee; Sustainability Report external assurance.

Dematerialisation processing and listing status

• Dematerialisation requests processed; securities were confirmed to the depositories.
• Securities dematerialised have been listed on the relevant stock exchanges.
• Physical certificates were mutilated and cancelled; depository name substituted as registered owner within timelines.

Allotment Details

• Approval for allotment of 95 perpetual unsecured NCDs Series PDI-2 on private placement.
• Face value INR 1 crore each, aggregate INR 95 crore.
• Allotment date: September 30, 2026.
• Coupon 9.90% p.a.; interest payments annually on Sep 30.
• Perpetual, unsecured, listed NCDs; RBI-approved call option after 10 years.
• Proposed listing on NSE.

IIFL Finance Ltd: Trading window closed from October 01, 2026 till 48 hours after the unaudited financial results for the quarter and half year ending September 30, 2026 are approved by the Board of Directors and filed with Stock Exchanges.

Issue Details

• Allotted 13,000 NCDs of INR 1,00,000 each, aggregating INR 130 crore.
• Type: Secured, Listed, Rated, Redeemable NCDs, Series D37 Reissue I.
• Issuance via private placement in dematerialised form.
• Allotment date: September 21, 2026; Maturity: September 01, 2028.
• Coupon: 9.25% p.a.; interest payments on Sep 02, 2027 and Sep 01, 2028.
• Security: First ranking pari passu charge over current and future book debts and assets.
• Redemption: INR 1,00,000 per debenture on September 01, 2028.
• Proposed listing: Yes, on NSE.

Meeting Details

• Sept 22, 2026: J.P. Morgan India Conference; Group and One-to-One meetings
• Sept 23–24, 2026: BofA Asia HK Conference; Group and One-to-One meetings

Participants

• Company management representatives (roles not specified)

Purpose

• Investor interaction with analysts and institutional investors

Additional Notes

• Schedule subject to change due to investor/analyst or company exigencies