IIFL Finance To Raise ₹1,272 Crore Via Rights Issue

IIFL Finance To Raise ₹1,272 Crore Via Rights Issue

The NBFC has been barred by the Reserve Bank of India (RBI) from sanctioning or disbursing gold loans.

PTIUpdated: Wednesday, April 17, 2024, 03:48 PM IST
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IIFL Finance To raise ₹1,272 Crore Via Rights Issue | Image: IIFL Finance (Representative)

IIFL Finance on Wednesday said its board has approved raising up to Rs 1,271.83 crore from a rights issue at a price of Rs 300 per share.

Last month, the IIFL board approved raising an amount not exceeding Rs 1,500 crore by way of issue of shares on a rights basis to existing eligible shareholders as on the record date.

The NBFC has been barred by the Reserve Bank of India (RBI) from sanctioning or disbursing gold loans.

Equity shares approved

In a regulatory filing on Wednesday, IIFL Finance said its board has approved 4,23,94,270 fully paid-up equity shares each for an amount aggregating up to Rs 1,271.83 crore (assuming full subscription with respect to rights equity shares).

It approved a price of Rs 300 per share including a premium of Rs 298 per unit and the record date is fixed as April 23, 2024, it said.

Rights equity share for every 9 fully paid-up equity shares held by the eligible equity shareholders of the company, as on the record date, it said, application by existing shareholders can be made between April 30 and May 14.

Last month, the RBI 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 will be reviewed upon completion of a special audit to be instituted by the RBI and after rectification by the company of the special audit findings and the findings of RBI Inspection to the satisfaction of the central bank. 

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