IIFL Finance to raise up to Rs 1,500 crore from rights issue

IIFL Finance on Wednesday said its board has approved raising of up to Rs 1,500 crore from rights issue amid the Reserve Bank of India (RBI) barring the NBFC from sanctioning or disbursing gold loans.

The board has approved fund raising for an amount not exceeding Rs 1,500 crore by way of issue of shares on a right basis to its existing eligible shareholders as on the record date (to be fixed in due course) in accordance with applicable provisions, IIFL Finance said in a regulatory filing.

Besides, the board in its meeting on Wednesday cleared the proposal for raising of funds through issue of non-convertible debentures on a private placement basis up to Rs 500 crore, it said.

Last week, the RBI barred IIFL Finance Ltd from disbursing gold loans, with immediate effect following multiple supervisory concerns, including serious deviations in assaying and certifying the purity of the yellow metal.

The RBI said the supervisory restrictions will be reviewed upon completion of a special audit to be instituted by it and after rectification by the company of the special audit findings and the findings of the RBI inspection to the satisfaction of the central bank.