IIFL Finance Plans To Raise Up To $242 Mln Via Shares, Debentures

IIFL’s board also gives its nod for several appointments in addition to fundraising approvals
IIFL Finance Plans To Raise Up To $242 Mln Via Shares, Debentures

IIFL Finance Ltd.’s board approved raising as much as 2,000 crore rupees ($242 million) through issue of equity shares and debentures.

The non-bank lender’s board approved raising up to 1,500 crore rupees via rights issue, IIFL said in a stock exchange announcement. The terms of the issue, including the record date, issue price, rights entitlement ratio, will be determined in due course.

In addition, the board approved raising as much as 500 crores rupees through issue of non-convertible debentures on a private placement basis.

The development came after IIFL last 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 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.

SPREE OF APPOINTMENTS

In addition to the fundraising approvals, IIFL’s board also gave its nod for several appointments.

The board approved the appointments of Bijou Kurien and Nihar Niranjan Jambusaria as additional (independent) director of the company.

IIFL said Kurien is a well-known consumer leader with over four decades of experience in building brands, businesses and creating organizations. Currently, he is a member of the Strategic Advisory Board of Premji Invest and also serves as an independent director on several listed and unlisted companies, it added.

The company noted that Jambusaria is a member of the Institute of Chartered Accountants of India (ICAI) and specializes in direct tax, international tax, mergers & acquisitions, FEMA, and business restructuring.

In addition, the board cleared the redesignation of Abhiram Bhattacharjee, currently serving as chief of staff, as chief operating officer of the company.

The board also appointed Shivalingam Pillai as chief compliance officer of the company. Pillai, a Chartered accountant, company secretary, and cost accountant, has over 25 years of experience in financial management, regulatory compliance, and corporate governance.

Pillai replaced Mauli Agarwal, who stepped down from the position due to her transition into another role within the organization.

Agarwal was appointed as company secretary and compliance officer of the company. She replaced Rupal Jain, who resigned to pursue higher studies.

The changes, subject to the approval of shareholders, are effective from today (13 March), according to the statement.

Note: $1 = 82.7883 Indian rupees

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