IIFL Finance shares jump 8% in falling market after subsidiary strikes deal to raise Rs 2,200 crore —Details

Shares of IIFL Finance Limited jumped more than eight percent in intraday trading on Friday after the company said its subsidiary had reached an agreement to raise Rs 2,200 crore. The surge in IIFL Finance’s share price comes after its wholly-owned subsidiary IIFL Home Finance signed definitive agreements with a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA). Closing of the transaction is subject to regulatory approvals

“IIFL Home Finance Limited, one of India’s largest affordable housing finance companies with assets under management of Rs 23,617 Cr as of March 31, 2022, has entered into definitive agreements to raise Rs 2,200 Cr of primary capital for a 20% stake of a company wholly owned by the Abu Dhabi Investment Authority (ADIA),” IIFL Finance Limited said in a regulatory filing.

Established in 2006 as a wholly owned subsidiary of IIFL Finance, IIFL Home Finance has created assets under management of ₹23,617 as of March 31, 2022, with an active customer base of 168,000 in 16 states and 2 territories of the Union with over 200 branches supported by over 3,200 employees. The company

According to leading company NBFC, it would be one of the largest equity investments in the affordable housing finance segment in India by a financial investor.

“We are delighted to partner with ADIA who bring to the table a long-term commitment and a wealth of experience supporting growing businesses. The investment recognizes IIFL Home Finance’s position as one of the largest providers of affordable home loans in India and how well placed it is to continue targeting the large, resilient home finance market,” said Nirmal Jain, founder of the IIFL group.

Meanwhile, around 12 noon, shares of IIFL Finance were trading with gains of almost eight percent or more from Rs 26.50 to 355.50 per share on BSE.