 "IIFL Finance")
The board of IIFL Finance has approved a rights issue in the ratio of one equity share for every nine equity shares amid the continuation of the ban on its gold loan business.
The issue price for the rights offer is Rs 300 per share, which is at a 29 per cent discount to the closing price of Rs 421.7 per share on Tuesday on the BSE.
The aggregate amount to be raised via the rights issue will be Rs 1,271.83 crore, assuming full subscription.
Under the proposed board-approved rights issue, the company plans to issue fully paid-up equity shares of the company with a face value of Rs 2 each. The price of the rights issue would include a premium of Rs 298 per share on application. One rights equity share would be issued for every nine fully paid-up shares held by the eligible equity shareholders of the company.
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The rights issue will open on April 30, 2024, and close on May 14, 2024, according to the company’s filing with the BSE.
Post the rights issue, the total number of fully paid equity shares will be 423.9 million, assuming full subscription to the issue and subject to finalization of the basis of allotment.
Earlier this week, Care Ratings put ratings assigned to various instruments and bank facilities of IIFL Finance Ltd's (IIFL) on "Rating watch with negative implications." This was on account of continued uncertainty regarding the restoration of gold loan operations of the company, with uncertainty on the timelines for completion of the scheduled special audit, which is to be done as per the Reserve Bank of India’s directive, CARE said.
