BENGALURU (Reuters) – India’s IIFL Finance said on Thursday that it will consider raising of funds on March 13, as the non-bank lender attempts to shore up capital days after the country’s central bank barred it from offering gold loans.
The company’s board will consider raising funds through the issuance of a range of securities, including equity shares or convertible bonds or debentures or warrants, by way of rights issue, private placement, preferential issue or any other methods, it said in an exchange filing.
The proposal comes a day after top shareholder Fairfax India agreed to provide up to $200 million in liquidity support to IIFL Finance, assuaging liquidity concerns among investors and lenders after the Reserve Bank of India’s direction.
Shares of the company have slumped about 30% since RBI barred the lender from disbursing gold loans, flagging “serious deviations”.
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Shailesh Kuber)
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