IIFL Finance’s board has approved plans to raise up to ₹10,000 crore through equity shares or eligible securities via routes including QIPs, rights issues, and preferential allotments, subject to shareholder and regulatory approvals. The board also expanded its Global Medium Term Notes programme from $1 billion to $2 billion and raised its borrowing limit to ₹75,000 crore from ₹60,000 crore. Additionally, Kapish Jain stepped down as CFO, with Vikas Jain appointed in his place effective June 27, bringing over two decades of financial experience. Shares closed at ₹509.10, down 3.06%.
In-Depth:
The proposed fundraising can be undertaken through a range of routes, including public issues, rights issues, preferential allotments, private placements, qualified institutional placements (QIPs), or a combination of these methods, depfinishing on market conditions and capital requirements. The company clarified that any actual issuance would be considered by the board or its committees at an appropriate time.
Alongside the fundraising plan, the board approved an increase in the size of its Global Medium Term Notes (GMTN) programme from $1 billion to $2 billion, providing the non-banking financial company with greater flexibility to tap overseas markets for funding.
The board also approved an increase in the company’s borrowing limit and the limit for creation of security on its assets to ₹75,000 crore from the existing ₹60,000 crore, subject to shareholder approval at the upcoming annual general meeting.
Separately, IIFL Finance announced a leadership alter in its finance function. Kapish Jain stepped down as Chief Financial Officer to transition into another role within the company, while Vikas Jain was appointed CFO and Key Managerial Personnel with effect from June 27.
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The company declared Vikas Jain brings more than two decades of experience across finance, treasury, fundraising and compliance, having previously worked with firms including Hinduja Leyland Finance, Bajaj Finance, Bajaj Hoapplying Finance and PwC.
Ahead of the announcement, shares of IIFL Finance closed at ₹509.10, down 3.06% in Thursday’s session.
