IIFL Finance shares soared 12% in early trading on Friday after the company announced that the Reserve Bank of India (RBI) had eased limitations on its gold loan business. IIFL Finance's shares rose 12.33% to Rs 555.25 from the previous closure of Rs 494.30. The firm's market capitalization rose to Rs 22,972 crore.

In a year, the stock has declined 3%. On Friday, a total of 8.62 lakh shares changed hands, resulting in a turnover of Rs47.45 crore on BSE.

In terms of technicals, IIFL Finance's relative strength index (RSI) is 56.4, indicating that it is neither oversold nor overbought. IIFL Finance shares are trading above the 5 day, 10 day, 50 day, 100 day, and 200 day moving averages.

IIFL Finance's one-year beta is 1.1, indicating that the stock will be volatile over that time period.

"The RBI, in a message dated September 19, 2024, relaxed the limitations on the company's gold lending operation. The RBI's decision takes effect immediately and authorizes the Company to restart the sanctioning, disbursement, assignment, securitization, and sale of gold loans in accordance with all applicable rules and regulations," IIFL Finance stated in a stock exchange statement.

"The company is committed to upholding the highest standards of compliance and will continue to ensure that the remedial actions taken are sustained," according to IIFL Finance.

The RBI implemented the limits on March 4, 2024.

IIFL Finance is one of India's top retail-focused diversified NBFCs, offering loans and mortgages through its subsidiaries, IIFL Home Finance and IIFL Samasta Finance.