IIFL Holding at a new high

IIFL Holdings hit a new 52-week high today; its previous high was at Rs.242 on 17thJune’16 and much before all this, it’s historic or life time high is at Rs.1974.90, hit in Jan’08.

The reason for this euphoria is yesterday evenings announcement – UK’s government owned development finance institution – CDC Group plc is making an investment of Rs.1000 crore in its wholly-owned subsidiary, India Infoline Finance Ltd (IIFL).

This money is expected to help the group expand the reach and gambit of its financing business, while fulfilling the capital needs of under-served segments through diversified offerings.

This investment is coming via compulsorily convertible preference shares (CCPS) which on conversion will result in about 15% equity stake for CDC in IIFL Finance on a fully diluted basis.

IIFL Finance is a non-deposit accepting Non-Banking Financial Company and engaged in the business of home & property loans, gold loans, commercial vehicle finance, healthcare finance, loan against securities and SME business loans.