June 13, 2024
Finance

IIFL Finance raises Rs 1,271 crore through rights issue to fund biz growth | Company News


The decision to raise capital through a rights issue was made following the RBI’s ban on March 4, which prohibited the NBFC firm from disbursing gold loans due to supervisory concerns

IIFL Finance
The rights issue offering 42,394,270 shares of IIFL Finance has been oversubscribed by 135 per cent (5,72,03,080 shares), as per data available on exchanges. | Photo: Facebook

Press Trust of India New Delhi

IIFL Finance on Wednesday said it has raised Rs 1,271 crore through a rights issue as part of efforts to raise capital to fund business growth.

The decision to raise capital through a rights issue was made following the RBI’s ban on March 4, which prohibited the NBFC firm from disbursing gold loans due to supervisory concerns.

Click here to follow our WhatsApp channel

The rights issue opened on April 30, 2024, and closed today, IIFL Finance said in a regulatory filing.

The rights issue offering 42,394,270 shares of IIFL Finance has been oversubscribed by 135 per cent (5,72,03,080 shares), as per data available on exchanges.

The rights issue was offered to the existing shareholders at Rs 300 per share in the ratio of one share for every nine shares held.
 

Promoters Nirmal Jain and R Venkataraman and family have fully subscribed to their shares since the issue is oversubscribed.

Besides, Indian-Canadian billionaire Prem Watsa-backed Fairfax India, which is the largest institutional shareholder has also participated in the issue.

It is to be noted that Fairfax had promised to give $200 million liquidity support to IIFL Finance on March 6, immediately after the RBI ban.

Besides subscribing to its portion in the rights issue, Fairfax has also subscribed to a Rs 500 crore non-convertible debentures issue of the company in March. Fairfax India holds a 15.1 per cent stake in IIFL Finance.

The RBI on March 4 barred IIFL Finance Ltd from disbursing gold loans, with immediate effect following multiple supervisory concerns, including serious deviations in assaying and certifying the purity of the yellow metal.

RBI had said that the supervisory restrictions would be reviewed upon the completion of a special audit to be instituted by the RBI and after the rectification by the company of the special audit findings.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

SUBSCRIBE TO OUR NEWSLETTER

Get our latest downloads and information first.
Complete the form below to subscribe to our weekly newsletter.


100% secure your website.