ICL Fincorp to launch ₹100 crore NCD issue offering 12.62% effective yield

ICL Fincorp, a Tamil Nadu-based non-banking financial company, on Friday said it is launching a Rs 100-crore public issue of secured redeemable non-convertible debentures (NCDs). The NCDs will offer an effective yield of 12.62 per cent.

 

The issue has a base size of Rs 50 crore and a green-shoe option of Rs 50 crore. The instruments are rated BBB- by domestic rating agency Crisil.

 

The proceeds will be used by the company to support its growth initiatives and enhance the quality of services provided to customers and stakeholders across India.

 

The NCDs have tenors of 13, 24, 36 and 70 months. They offer monthly, annual and cumulative interest payment options, with interest rates ranging from 10.50 per cent to 12.62 per cent. The minimum application amount is Rs 10,000, and each NCD carries a face value of Rs 1,000.

 

The issue will open for subscription on November 17 and close on November 28.

 

The NCDs are backed by a charge on ICL Fincorp’s gold loan receivables. 

 

The company said its loan book is predominantly gold loans, accounting for about 98–99 per cent, making the NCDs fully secured against high-quality collateral. ICL Fincorp’s product offering includes gold loans, hire-purchase loans and business loans.

 

According to K G Anilkumar, chairman and managing director, ICL Fincorp, gold loans continue to see strong momentum due to high gold prices and robust demand for gold-backed credit.

 

“Around 63–64 per cent of India’s gold loan market is still dominated by the unorganised sector. This presents a significant opportunity for NBFCs like us,” he noted.

 

ICL Fincorp spans 10 states — Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Odisha, Gujarat, West Bengal and Goa. The company plans to further expand into northern markets, including Delhi, Rajasthan, Punjab and Haryana, as it continues its journey toward establishing a pan-India footprint.

 

The company added that its acquisition of Salem Erode Investments, a BSE-listed NBFC, has further strengthened its position in the financial sector. ICL has also diversified into sectors such as travel, fashion, diagnostics and charitable enterprises.