IIFL Holdings shares at 8.5-year high as UK firm invests in arm

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26 Aug, 2025 12:21

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Moneycontrol BureauIIFL Holdings shares rallied more than 10 percent intraday Thursday to hit Rs 248.80, the highest level since February 4, 2008 after the United Kingdom's government-owned development finance institution picked up stake in company's subsidiary.

"CDC Group plc will make an investment of about Rs 1,000 crore in IIFL's wholly-owned subsidiary, India Infoline Finance (IIFL Finance). This investment will help IIFL Group in expanding the financing business and address the capital needs of under-served segments through diversified offerings," says the diversified financial services group.

The proposed investment is by way of compulsorily convertible preference shares (CCPS) which on conversion will result in about 15 percent equity stake for CDC in IIFL Finance on a fully diluted basis. The proposed transaction is subject to necessary regulatory approvals.

"CDC was the first private equity investor in IIFL during start-up phase in 1999. IIFL's strategy of focussing on small ticket retail credit to under-served geographies and segments resonates with CDC's investment objectives," Nirmal Jain, founder of IIFL Group said.

IIFL Finance is a non-deposit accepting Non-Banking Financial Company and engaged in the business of home & property loans, gold loans, commercial vehicle finance, healthcare finance, loan against securities and SME business loans.

For the financial year ended March 31, 2016, its loan book stood at Rs 17,770 crore and net profit was Rs 340 crore.

The investment banking arm of IIFL Group was the exclusive financial advisor to IIFL Finance in this transaction.

At 10:26 hours IST, the scrip of IIFL Holdings was quoting at Rs 241.30, up Rs 15.90, or 7.05 percent amid high volumes on the Bombay Stock Exchange.Posted by Sunil Shankar Matkar