IIFL Home Finance to raise nearly ₹3,000 crore through bond issue: Report

IIFL Home Finance plans to raise nearly ₹3,000 crore through a public issue of bonds, news agency Reuters reported, quoting a draft shelf prospectus filed by the company on Tuesday, October 1.

The lead managers of the bond issue for the home loan financing company are Trust Investment Advisors and IIFL Securities. These are rated AA by Crisil and India Ratings, according to the report.

The agency also reported that the details of the bond issue have not been finalised.

IIFL Finance is planning to raise ₹10,000 crore through debt in the October to March time period as the non-banking financial company (NBFC) lender looks to recover from a recent ban on issuing gold loans by the Reserve Bank of India (RBI), according to a report in September.

The RBI has ordered IIFL Finance to stop sanctioning and disbursing gold loans, citing “material supervisory concerns.” The central bank lifted the ban last month.

Mint reported earlier that IIFL Finance shares surged more than 12 per cent after the central bank lifted the ban on the non-banking lender's gold business.

“These restrictions were earlier imposed on March 04, 2024, which prohibited the Company from sanctioning, disbursing, or assigning/securitising/selling any of its gold loans. The RBI's decision is effective immediately and allows the Company to resume the sanctioning, disbursal, assignment, securitization, and sale of gold loans in compliance with all relevant laws and regulations,” according to the company's exchange filing in September.

HSBC upgraded IIFL Finance

After the RBI lifted the ban, global brokerage house HSBC upgraded IIFL Finance stock to ‘hold’ from ‘reduce.’ The company raised its stock target price to ₹540 from ₹350 earlier. HSBC also upgraded its financial year 2025-27, earnings per share (EPS) estimates by 6 per cent to 16 per cent, after the RBI's move. 

IIFL Home Finance is a wholly-owned subsidiary of IIFL Finance Ltd. IIFL Finance Ltd shares closed 1.04 per cent higher at ₹468 after Tuesday's market session, compared to ₹463.20 at close on Monday.