ICL Fincorp Limited is a well-known NBFC headquartered in Kerala, India. Established in 1991, it operates through a wide branch network across multiple states and is especially active in gold loans, vehicle finance, and business lending. Also, you can read about the Japan Stock Market: A Complete Guide for Traders & Investors
ICL Fincorp has been issuing public offers of secured, redeemable Non-Convertible Debentures from time to time to raise debt capital from retail and institutional investors. In this blog post, I provide a comprehensive guide to their NCDs-what they are, key features, risk-reward analysis, and whether they make sense for your portfolio. You can read about Excelsoft Technologies’ IPO.
What are ICL Fincorp NCDs?
- Type of Instrument: These are secured, redeemable, non-convertible debentures. “Secured” means they are backed by the company’s assets or a charge that normally acts as a safety cushion.
- Face Value: Each NCD has a face value of ₹ 1,000. Fujiyama Power Systems Private Limited
- Credit Rating: The NCDs have been rated CRISIL BBB- / Stable by CRISIL, a reputable rating agency.
- Debenture Trustee: The trustee is MITCON Credentia Trusteeship Services Ltd.
Key Issue Details (2025)
ICL Fincorp’s newest NCD issue, as of November 2025, is offering attractive yields and flexible tenures:
| Feature | Details |
|---|---|
| Issue Opening Date | 17 November 2025 |
| Issue Closing Date | 28 November 2025 |
| Issue Size | Base size of ₹ 50 crore, with a green-shoe option of another ₹ 50 crore (total up to ₹ 100 cr). |
| Tenure Options | 13, 24, 36, 60, and 70 months |
| Interest Rates / Payout Options | Interest rates range between 10.50% and 12.62%, depending on the option. Investors can choose from monthly, annual, or cumulative payouts. |
| Effective Yield | Up to 12.62% p.a. for some schemes |
| Minimum Application | ₹ 10,000 (i.e., at least 10 NCDs of ₹1,000 each) |
| Redemption / Maturity | At the end of tenure (no conversion into equity). |
Use of Funds & Purpose of the Issue
ICL Fincorp said the proceeds from the NCD issue will be utilized for:
- Onward Lending: The funds will help ICL Fincorp extend the core business of lending, namely gold loans, vehicle loans, etc. Fujiyama Power Systems Private Limited
- Repayment / Prepayment: A part of it may be utilised to repay or refinance current borrowings (interest and principal).
- General Corporate Purposes: To shore up the company’s equity base, to expand branches, or to meet working capital requirements. Capillary Technologies IPO 2025
Strengths & Advantages
- High Yield: With effective yields of up to 12.62%, these NCDs are quite appealing, particularly in an environment of relatively low-risk fixed-income options. Fujiyama Power Systems Private Limited
- Secured Instrument: Being secured gives a layer of protection; the debentures are backed by assets.
- Flexi Tenures: Various tenor options available-13-70 months that assist investors to tailor their investment according to their time horizon. You Need to Know About Tenneco Clean Air India IPO 2025 Before Investing
- The payout options are flexible to meet different income requirements: monthly, annual, or cumulative payouts.
- Credible Rating: Rated BBB- by CRISIL, which is investment-grade, though at the lower end.
- Minimum Investment: The minimum investment requirement is ₹10,000, which makes it fairly affordable for most retail investors. Capillary Technologies IPO 2025
Risks & Things to Watch Out For ICL Fincorp
While attractive, there are inherent risks with the ICL Fincorp NCDs:
- Credit Risk: A rating of BBB- is not super safe; it implies moderate credit risk. If ICL Fincorp’s business weakens, there could be a risk to principal or interest payments.
- Liquidity Risk: NCDs are not as liquid as equity. Trading might be less, and hence the possibility of exiting early would be low. Some of the holders of NCDs have reported low or zero “LTP” (last traded price) on the platforms. Fujiyama Power Systems Private Limited
- Interest Rate Risk: If market interest rates increase, then fresh instruments will offer better returns and hence reduce the attractiveness of old NCDs. You Need to Know About Tenneco Clean Air India IPO 2025 Before Investing
- Operating Risk of NBFC: This vulnerability may be related to macroeconomic shocks, regulatory changes, or credit defaults, particularly in the gold loan business of ICL Fincorp.
- Asset Cover: Even though the NCDs are secured, much importance lies in the strength and valuation of the underlying assets, as well as how the security structure is maintained.
Historical Context & Performance
- This issue in November 2025 is not new; ICL Fincorp has run similar issues of NCDs in the past.
- In April 2025, it launched another public NCD issue with tenures of 13, 24, 36, 60, and 68 months, and even offered an effective yield up to 13.01% for certain options.
- According to the Abridged Prospectus, the issue size for one of its NCD offerings was ₹7,50,000 (i.e., ₹ 750 crore) with an oversubscription option. Capillary Technologies IPO 2025
- The company declared its outstanding secured NCDs and the asset cover for those NCDs in its financial disclosures as of December 2024.
Company Background: ICL Fincorp
- Founded: 1991, originally as “Irinjalakuda Credits & Leasing Company.”
- Headquarters: Irinjalakuda, Thrissur, Kerala. Fujiyama Power Systems Private Limited
- Leadership: Adv. K. G. Anilkumar (Chairman & MD), and Uma Anilkumar (Whole-time Director & CEO).
- Business Model: Large presence in gold-backed loans, but also vehicle finance and business lending.
- Branch Network: Widespread reach across several key Indian states, including Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Odisha, and Gujarat. Capillary Technologies IPO 2025
Suitability: Who Should Consider These NCDs
Good fit for:
- Investors are looking for fixed income with relatively high yields.
- Medium-term investors, for those with tenures ranging from 1–6 years.
- Conservative investors are comfortable with BBB-rated NBFCs but prefer some security cover.
- People who do not require high liquidity and are okay holding to maturity.
Not ideal for:
- Highly risk-averse investors looking to invest in AAA-rated instruments only.
- Investors who may need to liquidate early and are counting on active secondary trading.
- Those skeptical of NBFC credit risk or the macroeconomic exposure of a lending company.
How to Invest in ICL Fincorp / Apply
- Prospectus Download: The abridged prospectus and other details can be found on the investor relations page of ICL Fincorp. You Need to Know About Tenneco Clean Air India IPO 2025 Before Investing
- ICL Fincorp Minimum Investment: Apply for at least ₹ 10,000.
- Munsif News Choose a Tenure: Among the available tenures, choose one, such as 13, 24, 36, 60, or 70 months, as mentioned in the latest issue. Capillary Technologies IPO 2025
- Select Payout Option: Select the frequency of coupon payout: monthly, annual, or cumulative.
- How to Apply: Apply using the application form available on ICL Fincorp’s website or through participating brokers.
- Credit Rating: Comprehend the meaning and implications of the CRISIL BBB- / Stable rating.
- Planning for Exits: Since liquidity is limited, plan whether you intend to hold till maturity or exit earlier–if possible. Fujiyama Power Systems Private Limited
Pros & Cons Summary Pros
Pros
- Attractive yield of up to 12.62%
- Secured nature adds safety.
- Flexible tenure and payout options
- Accessible minimum investment
Cons
- Cons Credit risk BBB
- Liquidity constraints
- Interest Rate Risk
- Business risk of NBFC
Final Thoughts for ICL Fincorp
The NCD issued by ICL Fincorp Limited is an attractive fixed-income proposition for investors seeking a relatively higher yield with some security. Though the credit rating is not of the highest level, the secured nature of the NCD, with flexible tenure and payout options, would make it a balanced risk-reward instrument for the medium-term investor. You Need to Know About Tenneco Clean Air India IPO 2025 Before Investing
However, like any investment, it is important to:
- Read the prospectus carefully
- Understand the business model of the company and the strength of its assets.
- Be comfortable with holding to maturity, given limited liquidity.
- Diversify – do not put all your debt investments into one instrument.
So, if you’re looking for a relatively high-yield and somewhat secure NBFC debt instrument while being okay with moderate risk, then ICL Fincorp’s NCD may be suited to your needs.