IIFL Finance board clears Rs 2,000 crore fundraise
IIFL Finance passed a resolution to raise ₹2,000 crore comprising a rights issue of ₹1,500 crore and non-convertible debentures of ₹500 crore, according to a statement issued by the company on Wednesday.
The company said that it plans to raise ₹1,500 crore by way of fast track rights issue before the end of June 2024 while the NCDs will be raised by this month-end.
The rights issue will be offered to the existing shareholders at ₹300 per share in the ratio of one share for every nine shares held, which on a fully subscribed basis shall aggregate to ₹1,272 crore, said people with knowledge of the matter.
Fairfax India, and the promoter group — Nirmal Jain, R Venkataraman and his family — are likely to fully subscribe to their share in the proposed rights issue, said one of the persons cited above. The ₹500 crore bond issue is likely to have a three-year tenor and bullet repayment option, he added.
IIFL shares closed at ₹383.95 on the BSE on Wednesday, down 3.3% over the previous trading day.
Two days after the RBI barred IIFL Finance from giving new gold loans, Prem Watsa's Fairfax India announced it would provide $200 million in liquidity support to the finance company.
The company has total loan assets under management of ₹77,444 crore, of which gold loans account for about 32% or ₹24,692 crore as of December 31, 2023.
The board of IIFL Finance also passed a resolution to appoint Shivalingam Pillai as chief compliance officer from March 13. Pillai will replace Mauli Agarwal who is appointed as company
