IIFL Finance Board To Meet Next Week For Fundraising

IIFL Finance Ltd. said its board will meet next week to consider and approve the proposal for fundraising.

The non-bank lender’s board is scheduled to meet on Wednesday (13 March), IIFL said in a stock exchange announcement.

The company plans to raise funds via issuance of equity shares, convertible bonds, debentures, warrants, preference shares or any other equity-linked securities through rights issue, private placement or preferential issue.

IIFL, which didn’t disclose the amount it plans to raise, said the exercise will be subject to regulatory and shareholders’ approval.

The development comes after IIFL earlier this week said its shareholder Fairfax India Holdings Corporation agreed to invest up to $200 million in the company to provide liquidity support amid the Reserve Bank of India’s (RBI) restrictions on the company’s gold loan business.

India’s central bank recently ordered IIFL to stop sanctioning or disbursing gold loans or assigning/securitizing/selling any of its gold loans over certain material supervisory concerns in the company’s gold loan portfolio.

(Send feedback to editor@cornerofficejournal.com)