IIFL Holdings gains a remarkable investor

On July 21, stock price of the company has risen by more than 10 per cent after getting an investment proposal from CDC group worth Rs 1000 crore. This is the second high-profile investment in a IIFL Group company. Late last year, Canadian investor Prem Watsa’s Fairfax India increased its stake in IIFL Holdings to 30.7 per cent from the earlier 8.8 per cent, through an open offer worth Rs 1,341 crore.

The proposed investment by CDC is through convertible preference shares, resulting in about 15 per cent equity stake on a fully diluted basis. This is also the second time CDC is investing in IIFL Group. It was an initial private equity investor in 1999 in indiainfoline.com, which it exited in 2004-05.

IIFL Holdings has a diversified offering — home loans, loans against property, commercial vehicle financing, health care finance, gold loans, capital market finance and business loans to small and medium enterprises (SMEs). In Q1FY17 company's consolidated net revenue has grown by 11.81 per cent to Rs 1108 crore as compared to the previous quarter; whereas the EBITDA has risen by 9.50 per cent to Rs 702 crore and PAT is up by 8.76 per cent to Rs 148 crore from the previous quarter.