IIFL Finance on April 17 said its board approved Rs 1,272-crore rights issue at Rs 300 per equity share, a 29% discount to the last close. A rights issue is an invitation to existing shareholders to purchase more shares in the company.
The rights issue will come at a time when IIFL Finance is looking to shore up capital a month after Reserve Bank of India barred it from offering gold loans.
IIFL said shareholders will get one rights share for every nine shares they hold. The issue runs from April 30 to May 14 and April 23 has been fixed as the record date.
In mid-March, IIFL had said it would raise up to Rs 1,500 crore through a rights issue, which gives preferential treatment to existing shareholders, but had not finalised the amount.
That plan had come days after RBI ordered the company to stop sanctioning, disbursing and selling gold loans due to "material supervisory concerns" in its portfolio.
Since then, IIFL's stock has sunk 30% through its closing price on Tuesday. On April 16, IIFL Finance's shares on BSE closed 2.35% lower at Rs 421.7 apiece.
Fairfax India, IIFL's top shareholder with a 15% stake, had said it would provide up to $200 million in liquidity to support the lender.
IIFL's gold loans under management stood at Rs 24,692 crore as of December 31, accounting for 32% of its total assets.
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