Capital raise, mgmt change on the cards for IIFL post RBI rap
IIFL Finance has taken several corrective measures to set its house in order after RBI’s diktat to stop disbursing gold loans. The non-banking finance company (NBFC) announced a capital raising plan to boost its capital adequacy and changed its board and management to improve governance and compliance.
In an exchange filing on Wednesday, the NBFC said it has received board approval to raise up to ₹1,500 crore by way of rights issue. The NBFC will also raise debt through nonconvertible debentures worth ₹500 crore.
Last week its largest shareholder, Fairfax India, with a shareholding of 15.1%, had pledged to invest $200 million as liquidity support to bolster confidence among investors and other stakeholders.
According to a person aware of the matter, $200 million is a kind of credit line from Fairfax, which will be infused partly in the form of equity through rights issue and the remaining over a period of time. The capital raising is expected to be completed before June this year, he said.
Separately, IIFL has appointed two additional independent directors to its board—Bijou Kurien, chairman of Retailers Association of India, and Nihar Niranjan Jambusaria, former president of the Institute of Chartered Accountants of India.
The non-bank lender has also seen a few change of heads including that of chief compliance officer and company secretary. Mauli Agarwal, who was earlier the chief compliance officer, will take charge as company secretary and compliance officer.
Rupal Jain, the company secretary, has left to pursue higher studies. Meanwhile, the company has elevated Abhiram Bhattacharjee, chief of staff, as chief operating officer, a newly created post.