IIFL Finance stock hits another 52-week low, lost 44% of its value in 12 sessions
IIFL Finance, a prominent NBFC specialising in retail credit, have experienced a significant decline in their wealth as the company's shares have plummeted sharply after the RBI imposed restrictions on its gold loan disbursements, raising concerns about liquidity among investors and lenders. Over the past 12 trading sessions, the company has witnessed a substantial decline in its share price, plummeting from ₹597 per share to the current trading price of ₹336, marking a steep decrease of 44%.
Also Read: Infosys: 3 reasons why UBS Research expects more than 15% upside for the stock Despite broader market gains, the stock hit another 52-week low of ₹329.50 in today's trading session. With the current trading price, the stock has now reached levels not seen since August 2022.
The company's market capitalization has shrunk significantly from ₹22,686 crore to ₹12,831 crore, reflecting a loss of ₹9,855 crore over the past 12 trading sessions. Meanwhile, the stock's performance was further influenced by target cuts from brokerage firms.
On the other hand, credit rating agency Fitch placed India's IIFL Finance's 'B+' long-term issuer default rating and medium-term note programme rating on negative watch, adding to the downward pressure. Also Read IIFL Finance share price down 20%; Jefferies downgrades the stock ratings to Hold as gold loan ban may hurt profit Despite efforts to restore investor and lender confidence, including a commitment of up to $200 million in liquidity support from the company's top shareholder, Fairfax India, sentiment remains subdued.
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