IIFL Finance shares gain 23% in 4 sessions, up 39% from March low – here's what's driving the sharp recovery
IIFL Finance, a prominent non-banking financial company (NBFC) specialising in retail credit, have recently witnessed a notable resurgence. This rebound follows a significant sell-off observed in the first three weeks of March, triggered by RBI restrictions on its gold loan disbursements. Over the past four trading sessions, the stock has surged by 23%, showcasing a remarkable recovery.
Since hitting their March low of ₹313 apiece, the shares have appreciated by 39%, currently trading at ₹435.65 apiece. This resurgence was underpinned by several positive developments. Also Read: Uday Kotak of Kotak Bank shows THIS wild card as he warns to be ready for turbulence On April 05, the stock experienced a notable uptick of 13.18% following the revision of the price band limit for the stock, which was increased to 20% from the previous 10%.
Additionally, on April 02, the company announced that it had received approval from the NSE (National Stock Exchange of India Ltd) to acquire equity shares worth up to ₹284.40 crore in the stock exchange through an off-market transfer from FIH Mauritius Investments. Despite experiencing a significant rebound, the shares are currently trading 38% lower from their peak of ₹704 per share. On March 04, the Reserve Bank of India (RBI) imposed restrictions on IIFL Finance, prohibiting it from sanctioning and disbursing gold loans due to material supervisory concerns.
Also Read: US Fed rate cut unlikely in June as US inflation hots up. What this means for Indian investors and what should they do? In an effort to fortify its financial standing, the company successfully raised ₹500 crore through the issuance of non-convertible bonds on March 21, as part of its larger plan to raise ₹2,000 crore. These
. Read more on livemint.com
