As part of the rights offering, the business would issue fully paid-up equity shares with a face value of ₹2.
For the rights offer, IIFL Finance will issue 4.23 crore fully paid-up equity shares, which, upon full subscription, will bring in ₹1,271.83 crore for the business.
The shares will be offered by the business at ₹300 apiece, which represents a 30% reduction from Tuesday’s closing price of ₹423. April 30, 2024, is when the rights issue will open, and it will end on May 14.
Every nine fully paid-up equity shares of the corporation held as of the record date will entitle each current shareholder to one rights equity share. To participate in a company’s rights issue, one must be an existing shareholder.
In the event of a complete subscription, the company’s outstanding equity shares will increase from 38.15 crore to 42.39 crore following the rights issue.
Due to significant supervisory concerns in the company’s gold loan portfolio, the Reserve Bank of India gave IIFL Finance instructions to cease making gold loan disbursements in March. Given that the RBI limits will probably have an impact on the gold loan business, which accounts for 25% of IIFL Finance’s overall profitability, analysts have expressed concern about it. In the intervening period, the stock price has dropped 30%.
The business board authorized the issuance of shares on March 13th, with the goal of raising ₹1,500 crore.
Tuesday saw a 1.9% close for IIFL Finance shares at ₹423.
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