IIFL Finance Ltd announced on Wednesday that its board has approved the conditions of its planned rights issue. The NBFC stated that the rights issue for up to Rs 1,271.83 crore will commence on April 30 in line with the Companies Act, 2013 and the rules enacted thereunder, as amended, the Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The rights issue size is 4,23,94,270 fully paid-up equity shares each for a total of Rs 1,271.83 crore, with a rights issue price of Rs 300 per fully paid-up share, including a premium of Rs 298. 

The record date for this is Tuesday, April 23, 2024. IIFL Finance announced that the rights issue will begin on Tuesday, April 30, 2024. It would end on Tuesday, May 14, 2024.

Prior to the rights offering, IIFL Finance held 38,15,48,435 fully paid equity shares. Following the issuance, it will have 42,39,42,705 fully paid equity shares. This is based on the assumption of full subscription to the issue and is subject to the finalization of the basis of allotment.

In its meeting on March 13, the IIFL Finance approved a rights issue of up to Rs 1,500 crore and established a securities issue committee in accordance with the Companies Act, 2013 and the rules enacted under it, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, each as amended, and other relevant laws.

Last month, Fitch Ratings placed IIFL Finance's 'B+' Long-Term Issuer Default Rating (IDR) and medium-term note (MTN) programme rating on Rating Watch Negative (RWN), citing the risk to IIFL Finance's franchise, profitability, and overall risk profile if regulatory restrictions on new gold-backed lending are extended.

Gold loans are a significant product for the corporation, accounting for 32% of assets under management and 18% of gross on-book loans in the third quarter of the fiscal year ending March 2024.