IIFL Finance plans Rs 1,272-crore rights issue

MUMBAI: IIFL Finance plans to raise 1,272 crore through a rights issue, at 300 per share, offering a near-30% discount to the market price. The issue opens April 30 and ends May 14.

IIFL Finance shareholders will get one share for every nine they hold. This move comes after the Reserve Bank of India (RBI) banned IIFL Finance from issuing gold loans in March.

Nearly a third of IIFL Finance’s book consists of gold loans, with assets under management of more than 20,000 crore.

On April 16, shares of the company declined 2.35% to 421.7 apiece. Mumbai markets were shut Wednesday. A rights issue is an incentive for existing shareholders to buy more shares of the company at a discount.

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