New Delhi: IIFL Finance on Wednesday said it has raised Rs 1,271 crore through a rights issue as part of its efforts to raise capital for business growth.
The decision to raise capital through a rights issue was taken following the RBI ban on March 4, which had barred NBFC firms from offering gold loans due to supervisory concerns.
The rights issue opened on April 30, 2024, and closed today, IIFL Finance said in a regulatory filing.
According to data available on the exchanges, the rights issue of IIFL Finance offering 4,23,94,270 shares has been oversubscribed by 135 per cent (5,72,03,080 shares).
The rights issue was offered to 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 was oversubscribed.
Besides, Indian-Canadian billionaire Prem Vats-backed Fairfax India, which is the largest institutional shareholder, has also participated in the issue.
It is noteworthy that Fairfax had promised to provide liquid support of US $ 200 million to IIFL Finance on March 6, immediately after the RBI ban.
Apart from subscribing to its share in the rights issue, Fairfax has also subscribed to the company's Rs 500 crore non-convertible debenture issue in March. Fairfax India holds 15.1 per cent stake in IIFL Finance.The RBI on March 4 barred IIFL Finance Ltd from giving gold loans with immediate effect following several supervisory concerns, including serious deviations in testing 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 initiated by RBI and after the company makes corrections to the special audit findings.
The decision to raise capital through a rights issue was taken following the RBI ban on March 4, which had barred NBFC firms from offering gold loans due to supervisory concerns.
The rights issue opened on April 30, 2024, and closed today, IIFL Finance said in a regulatory filing.
According to data available on the exchanges, the rights issue of IIFL Finance offering 4,23,94,270 shares has been oversubscribed by 135 per cent (5,72,03,080 shares).
The rights issue was offered to 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 was oversubscribed.
Besides, Indian-Canadian billionaire Prem Vats-backed Fairfax India, which is the largest institutional shareholder, has also participated in the issue.
It is noteworthy that Fairfax had promised to provide liquid support of US $ 200 million to IIFL Finance on March 6, immediately after the RBI ban.
Apart from subscribing to its share in the rights issue, Fairfax has also subscribed to the company's Rs 500 crore non-convertible debenture issue in March. Fairfax India holds 15.1 per cent stake in IIFL Finance.The RBI on March 4 barred IIFL Finance Ltd from giving gold loans with immediate effect following several supervisory concerns, including serious deviations in testing 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 initiated by RBI and after the company makes corrections to the special audit findings.
