New Delhi-based gold loan financier IFL Finance has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering. According to the draft papers filed on July 22, the IPO comprises 3.85 crore equity shares, including a fresh issue of 3.55 crore shares and an offer-for-sale (OFS) of 30 lakh shares. The non-banking financial company may also undertake a pre-IPO placement of up to 1.15 crore equity shares before filing the red herring prospectus, with the pre-IPO placement forming part of the fresh issue.
The company delivered exceptional financial results for the quarter ended June 2026, with net profit surging 189.30% to ₹675.07 crore compared to ₹233.35 crore in the corresponding quarter of the previous year. Sales revenue increased 32.73% to ₹3,919.15 crore from ₹2,952.83 crore year-on-year, while operating profit margin improved to 69.10% from 57.09% in the same period last year. The company's total loan assets under management (AUM) reached ₹1,08,180 crore, representing a 38% year-on-year growth, demonstrating strong operational traction in its secured lending franchise.
The company is a non-deposit-taking NBFC classified as an Investment and Credit Company (ICC) and categorised as a Base Layer NBFC under the Reserve Bank of India's regulatory framework. According to the draft papers, IFL Finance provides secured retail loans with a primary focus on gold loans through a network of 88 branches across the National Capital Territory of Delhi, Rajasthan, Madhya Pradesh, Uttar Pradesh, and Haryana. Gold loans accounted for 84.77 percent of the company's total loan portfolio in FY26, while home loans and loans against property contributed 14.33 percent and 0.9 percent, respectively.
Recent market developments show mixed performance for gold loan companies, with IIFL Finance dropping 2.49% while Muthoot Finance fell 1.94% and Manappuram Finance declined 1.65%. The decline was attributed to gold prices coming under pressure after the US dollar strengthened and investors increased bets that the US Federal Reserve could raise interest rates later this year. Gold futures on the MCX for August 2026 delivery have fallen by over ₹7,000 per 10 grams to ₹1,41,205, with international gold prices slipping below $4,000 an ounce for the first time since November 2025. On the asset quality front, the company's gross non-performing assets (GNPA) increased to 0.79 percent in FY26 from 0.67 percent a year earlier, while net non-performing assets (NNPA) rose to 0.58 percent from 0.46 percent.
