Gold loan provider IFL Finance receives SEBI approval to launch IPO

Market Mastery

Webinar by Vishal Malkan

Find the weak links

in your portfolio by Vishal Malkan

Delhi-based non-banking financial company (NBFC) IFL Finance has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO).

The NBFC had approached SEBI in July 2026 by filing a draft red herring prospectus (DRHP) to raise funds through an IPO of 3.85 crore equity shares.

The proposed IPO comprises a fresh issue of 3.55 crore equity shares and an offer-for-sale (OFS) of 30 lakh shares by the promoters.

On November 5, the capital markets regulator issued its observations on IFL Finance's draft offer document. Following receipt of the observations letter, the company has one year to file its red herring prospectus (RHP) to proceed with the public issue.

IFL Finance may also consider raising funds through a pre-IPO placement of up to 1.15 crore equity shares, which forms part of the fresh issue component. If the pre-IPO placement is undertaken, the amount raised through it will be deducted from the fresh issue size.

IFL Finance is a non-deposit-taking NBFC classified as an Investment and Credit Company (NBFC-ICC) and categorised as a Base Layer NBFC under the Reserve Bank of India's regulatory framework. The company provides secured retail loans, with a primary focus on gold loans.

As of March 2026, IFL Finance operated a network of 88 branches across four states and one Union Territory. Of these, 31 branches were located in the National Capital Territory of Delhi and 33 in Rajasthan.

The company proposes to utilise Rs 150 crore from the net proceeds of the fresh issue, excluding offer-related expenses, to augment its Tier-I capital base. This will help it meet future capital requirements, including funding onward lending, arising from the growth of its business.

Aryaman Financial Services has been appointed as the merchant banker to manage the IFL Finance IPO.