New Delhi-based IFL Finance has filed for an IPO featuring a fresh issue of 3.55 crore shares to boost its capital base. The lender, focused on gold loans, reported a FY26 net profit of Rs 21.63 crore. Investors will monitor how this capital infusion supports its lending growth against rising non-performing assets.
Detailed Coverage
New Delhi-based non-banking financial company IFL Finance has submitted its draft red herring prospectus to the Securities and Exchange Board of India to launch an initial public offering. The proposed share sale includes a fresh issue of 3.55 crore equity shares and an offer-for-sale involving 30 lakh shares by existing promoters, including Sunita Bansal and various Hindu Undivided Family accounts.
Capital Use and Financial Strategy
The company is looking to strengthen its financial position as a Base Layer NBFC under Reserve Bank of India regulations. According to the draft documents, IFL Finance plans to use approximately Rs 150 crore from the fresh issue proceeds to increase its Tier-I capital. This capital is intended to support the company’s onward lending activities and overall business expansion. There is also a provision for a pre-IPO placement of up to 1.15 crore shares, which would reduce the final fresh issue size if completed.
The firm operates primarily in the gold loan segment, which accounted for 84.77 percent of its total loan portfolio as of March 2026. The remainder of its business consists of home loans at 14.33 percent and loans against property at 0.9 percent. The company maintains a network of 88 branches spread across Delhi, Rajasthan, Madhya Pradesh, Uttar Pradesh, and Haryana.
Financial Performance and Asset Quality
For the financial year ended March 2026, IFL Finance recorded a net profit of Rs 21.63 crore, representing a 19.3 percent growth compared to the previous year. Its net interest income climbed nearly 10 percent to reach Rs 47 crore. While the company is showing growth, the latest filings reveal a trend in asset quality that investors often watch closely. The company's gross non-performing assets, which measure the proportion of loans that are not being repaid as scheduled, rose to 0.79 percent in FY26 from 0.67 percent the year before. Similarly, net non-performing assets increased to 0.58 percent from 0.46 percent.
When looking at the broader sector, the company competes with various established players including Muthoot Finance, SBFC Finance, and Capri Global Capital. As the company prepares for its market debut, the key monitorables for potential investors will be its ability to maintain profit margins while managing the recent uptick in bad loans, along with the successful execution of its branch expansion strategy. Aryaman Financial Services has been appointed as the sole merchant banker to manage the IPO process.