– By Dilip Davda
- This is the maiden debt offer from IFL.
- This NCD issue is rated ACUITE BBB-/stable.
- It posted inconsistency in its top and bottom lines for the reported periods.
- The company is operating in a highly competitive and fragmented segment.
- There is no harm in skipping this poorly rated, high risk debt issue.
ABOUT COMPANY:
IBL Finance Ltd. (IFL) is a technology-driven NBFC providing digital lending solutions to retail in the form of personal loans and to Financial Institution (FI) in the form of term loans. Incorporated in 2017, the Company is engaged in providing technology-enabled lending solutions with a focus on responsible lending, prudent risk management, and operational efficiency. Drawing on the promoters’ experience in the lending and financial services sector, the Company has developed a scalable fintech-enabled lending platform supported by digital processes, data analytics, and proprietary credit assessment models.
These capabilities facilitate efficient customer onboarding, credit evaluation, loan servicing, and portfolio monitoring while maintaining disciplined underwriting standards. IFL initially focused on serving self-employed individuals, salaried professionals and small business entrepreneurs through a fully digital personal loan platform and has since diversified into term lending to Financial Institutions
engaged in retail and MSME lending, thereby broadening its borrower base and geographic presence.
The company continues to focus on sustainable growth through technology-led innovation, sound governance, effective risk management, and financial inclusion. The Company continues to strengthen its lending franchise while creating long-term value for its stakeholders. IBL believes that access to finance has the power to transform aspirations into opportunities and opportunities into sustainable growth. As of June 30, 2026, it had 47 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its maiden debt offer of Secured, Redeemable Non-Convertible Debentures (NCDs) of face value of Rs. 1000 each. The base size of the issue is Rs. 25 cr. land it has a green shoe option for retaining oversubscription to the tune of Rs. 25 cr., thus making the overall issue size of Rs. 50 cr. for 500000 NCDs.
The company is spending Rs. 1.36 cr. for this debt offer and from the net proceeds, it will utilize at least 75% for onward lending, financing, repayment/prepayment of its existing borrowings (principal and interest), and maximum up to 25% for general corporate purposes.
The issue opens for subscription on October 12, 2026, and will close on or before October 26, 2026. The minimum application to be made is for 10 NCDs (i.e., Rs. 10000) and in multiple of 1 NCD (i.e., Rs. 1000) thereon, thereafter. Post allotment, NCDs will be listed on BSE. Post allotment, NCDs will be listed on BSE only. (The shares of this company are listed on NSE SME emerge).
The company is offering a coupon rates ranging from 10.00% to 11.50% with tenors of 13 moths, 24 months, 36 months and 60 months with interest payment frequency of Monthly, and Annually, based on the series opted by the investors. There is no PUT and CALL option applicable.
The company has allocated 2.50% for Institutional portion, 2.50% for non-Institutional portion, 50.00% for HNIs and 45.00% for Retail investors.
The debt offer is solely lead managed by Comfort Securities Ltd., and KFin Technologies Ltd. is the registrar to the issue. Beacon Trusteeship Ltd. is the debenture trustee.
CREDIT RATING:
The NCDs proposed to be issued under this Issue have been rated “ACUITE BBB- | Stable |Assigned” by Acuité Ratings & Research Limited(“Acuité”) vide its letter dated August 25, 2026, and Press release
for rating rationale dated March 05, 2026 for an amount of Rs. 50.00 cr. The rating of NCDs by Acuité indicates that securities with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations and carry low credit risk with “moderate degree of safety regarding timely servicing of financial obligations and carry moderate credit risk”.
This rating is not a recommendation to buy, sell or hold securities and investors should take their own decisions. The rating given by Acuité is valid as on the date of this Prospectus and shall remain valid on date of the issue and allotment of NCDs and the listing of the NCDs on BSE. The rating provided by rating agency may be suspended, withdrawn or revised at any time by the assigning rating agency on the basis of new information etc., and should be evaluated accordingly.
FINANCIAL PERFORMANCE:
On financial performance front, for the last four fiscals, the company has posted a total income/net profit of Rs. 13.33 cr. / Rs. 2.05 cr. (FY23), Rs. 14.22 cr. / Rs. 2.28 cr. (FY24), Rs. 13.06 cr. / Rs. 2.36 cr. (FY25), and Rs. 17.33 cr. / Rs. 2.44 cr. (FY26). For Q1 of FY27 ended on June 30, 2026, it earned a net profit of Rs. 0.35 cr. on a total income of Rs. 4.55 cr. The company posted inconsistency in its top and bottom lines for the reported periods.
Its debt/equity ratio of 0.95 as of June 30, 2026, will stand enhanced to 1.77 post this issue.
Its paid-up equity capital of Rs. 24.73 cr.as of June 30, 2026, was supported by free reserves of Rs. 36.72 cr.
CONCLUSION:
IFL is engaged in the financial services segment as an RBI registered NBFC. This is the maiden debt offer from the company. This NCD issue is rated ACUITE BBB-/stable. It posted inconsistency in its top and bottom lines for the reported periods. The company is operating in a highly competitive and fragmented segment. There is no harm in skipping this poorly rated, high risk debt issue.
Review By Dilip Davda on August, 2026
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
