IIFL Finance: The rights issue size stands at 4,23,94,270 fully paid-up equity shares each for amount aggregating up to Rs 1,271.83 crore while the rights issue price is set at Rs 300 per fully paid-up share.
IIFL Finance
IIFL Finance Ltd on Wednesday said its board approved terms of its proposed rights issue. The NBFC said the rights issue for an amount aggregating up to Rs 1,271.83 crore will open on April 30, in accordance with the Companies Act, 2013 and the rules made thereunder, as amended, the Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2018.
The rights issue size stands at 4,23,94,270 fully paid-up equity shares each for amount aggregating up to Rs 1,271.83 crore while the rights issue price is set at Rs 300 per fully paid-up share, which included a premium of Rs 298 per share.
The record date for the same is Tuesday, April 23, 2024. The rights issue, IIFL Finance said, will open on Tuesday, April 30, 2024. It would conclude on Tuesday, May 14, 2024.
Prior to the rights issue, IIFL Finance has 38,15,48,435 fully paid equity shares. Post the issue it would have 42,39,42,705 fully paid equity shares. This is based on the assumption of full subscription to the issue and subject to finalisation of the basis of allotment.
In its meeting on March 13, the IIFL Finance approved rising of up to Rs 1,500 crore by way of a rights issue and constituted a securities issue committee in the regard, in accordance with the Companies Act, 2013 and the rules made thereunder, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, each as amended and other applicable laws.
Last month, Fitch Ratings placed IIFL Finance’s ‘B+’ Long-Term Issuer Default Rating (IDR) and medium-term note (MTN) programme rating on Rating Watch Negative (RWN), citing risk to IIFL Finance’s franchise, profitability and overall risk profile if regulatory restrictions on new gold-backed lending are prolonged.
Gold loans are a key product for the company, accounting for 32 per cent of assets under management and 18 per cent of gross on-book loans in the third quarter of the financial year ended March 2024.
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