On Wednesday, IIFL Finance announced that its board has approved a rights issue to raise up to Rs 1,500 crore, following the RBI’s decision to prohibit the NBFC from offering gold loans.
The board has agreed to raise funds not exceeding Rs 1,500 crore through the issuance of shares to existing eligible shareholders as on the record date, which will be determined later, in compliance with relevant regulations, according to a regulatory filing by IIFL Finance.
In addition, the board also approved the proposal to raise funds through the issuance of non-convertible debentures on a private placement basis, up to Rs 500 crore.
Last week, the RBI imposed a ban on IIFL Finance Ltd from disbursing gold loans due to various supervisory concerns, including significant discrepancies in assaying and certifying the purity of gold.
The RBI stated that the supervisory restrictions will be lifted after a special audit is conducted by the central bank and the company rectifies the audit and inspection findings to the satisfaction of the RBI.
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