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IIFL Finance Plans to Secure Rs 1,272 Crore Through Rights Offering

IIFL Finance, a non-banking financial company (NBFC), announced on Wednesday its intention to raise up to Rs 1,271.83 crore through a rights issue priced at Rs 300 per share. This decision follows the approval granted last month by the company’s board to raise funds of up to Rs 1,500 crore through the issuance of shares to existing eligible shareholders as of the record date.

However, it’s noteworthy that the Reserve Bank of India (RBI) has prohibited IIFL Finance from sanctioning or disbursing gold loans. This directive was issued due to several supervisory concerns, including significant irregularities in assessing and certifying the purity of gold.

In its regulatory filing, IIFL Finance specified that the rights issue entails the issuance of 4,23,94,270 fully paid-up equity shares, with each share priced at Rs 300, including a premium of Rs 298 per share. The record date for eligibility is set as April 23, 2024. Eligible shareholders, holding nine fully paid-up equity shares as of the record date, are entitled to apply for one rights equity share. The application period for existing shareholders is scheduled between April 30 and May 14.

The RBI has stated that the restrictions on IIFL Finance will be reconsidered following the completion of a special audit, to be conducted by the RBI, and upon the company’s rectification of the audit findings and RBI inspection findings to the satisfaction of the central bank.