The Mid-cap share rose 1 percent hitting its intraday high of Rs 614.60 from its previous close of Rs 608.5 on Friday after the company announced the raise of JPY 7.5 Billion (US$50 Million) from a leading Japanese megabank’.
IIFL Finance raised JPY 7.5 billion (US$50 million) through external commercial borrowing (ECB) from Mizuho Bank’s Singapore branch. The funds will be used to diversify IIFL’s borrowing options and support its growth. This is the first time that IIFL has accessed JPY funding, and it marks the beginning of a new relationship with Mizuho Bank.
The facility is long-term and will strengthen IIFL’s asset-liability position. IIFL Finance is one of India’s largest retail-focused non-banking financial companies with over 4,400 branches and 85 lac customers. Home loans, gold loans, digital loans, and microfinance loans are among the company’s consolidated core business segments, with the majority of its customers being unbanked or underbanked.
According to the IIFL Finance Ltd report, the net revenue increased by 33.8 percent year over year, from Rs 1,761 crore in Q2FY23 to Rs 2,357 crore in Q2FY24. Their revenue rose by 7 percent sequentially from Rs 2,198 crore in Q1FY24 to the current levels.
In addition, the company’s net profit rose by 32 percent year over year, from Rs 397 crores in Q2FY23 to Rs 525 crores in Q2FY24. Their profit decreased by 11.2 percent on a quarterly basis from Rs 472 crore in Q1FY24 to the current levels.
The company’s promoters hold a 25 percent stake in the company, with 28 percent owned by foreign institutional investors, 40 percent owned by the general public, and 7 percent owned by domestic institutional investors.
IIFL Finance Ltd is a large-cap company with a market capitalization of Rs 23,333 crores. IIFL Finance Ltd’s share price has risen by 28.5 percent year to date and by 38.2 percent during the previous six months.
IIFL Finance Ltd, along with its subsidiaries, is a diversified NBFC in India that provides loans and mortgages. It provides a wide range of products, including home loans, gold loans, business loans, microfinance, capital market finance, and developer and construction finance, among others.
Written by Sriram KV
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