 "IIFL Finance rises 3% as board gives nod to NCDs up to Rs 25,000-cr")
IIFL Finance shares rose 2.8 per cent in trade on Thursday and registered an intraday high of Rs 433.15 per share on BSE. The buying interest in the stock came after the company's board approved Rs 25,000 crore worth non convertible debentures (NCDs).
Around 12:29 PM, IIFL Finance shares were up 2.17 per cent at Rs 430.5 per share. In comparison, the BSE Sensex was down 0.62 per cent at 79,446.43. The market capitalisation of the company stood at Rs 18,272.80 crore.
"The board of directors of the company at their meeting held today, i.e. October 31, 2024, approved the public issue of secured, rated, listed, redeemable non-convertible debentures, with the shelf limit of up to Rs 2,500 crore," the filing read.
The transaction is expected to take place in one or more tranches.
In its Q2 results, IIFL Finance reported a consolidated net loss of Rs 93.07 crore in the second quarter as compared to a net profit of Rs 525.52 crore in the July-September 2023 quarter (Q2FY24).
The loss was incurred as the non-banking finance company (NBFC) made a 100 per cent provision of Rs 586.5 crore for security receipts (SRs) during the quarter. These SRs were issued to the NBFC for the sale of investments in alternative investment funds (AIFs) to an asset reconstruction company (ARC).
IIFL Finance income from operations for the quarter under review was flat at Rs 2,318 crore as compared to Rs 2,357 crore in Q2 FY24.
More From This Section
The company's management said that the past quarter was difficult for IIFL Finance due to regulatory embargo on the gold loan business, as per the filing.
“This past quarter has been one of our most challenging, primarily due to the regulatory embargo on our gold loan business.” Nirmal Jain, managing director of IIFL Finance, said in a statement.
Jain added: The company has taken corrective actions that have satisfied regulatory authorities, and the embargo has now been lifted, he added.
In the past one year, IIFL Finance shares have lost 30 per cent against Sensex's rise of 25 per cent.