IIFL Finance To Raise $152 Mln; Rights Issue To Open On 30 April

IIFL Finance Ltd. said its board approved raising 1,271.83 crore rupees ($152 million) via rights issue, which will open on 30 April.

The company, which will issue around 4.24 crore shares to eligible investors, set the rights issue price at 300 rupees per share, IIFL said in a stock exchange announcement.

IIFL closed at 422.05 rupees on the National Stock Exchange yesterday.

Shareholders as on the record date of 23 April will receive one rights share for every nine shares held in the company. The issue will close on 14 May.

In March, the non-bank lender’s board approved raising as much as 2,000 crore rupees through issue of equity shares and debentures.

The development came after IIFL 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 on 4 March 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.

Note: $1 = 83.6030 Indian rupees

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