The shares of the second-largest gold loan provider rose 3 percent to Rs 589.70 per share following the news of a bulk deal by FIH Mauritius Investments which sold a 5.7 percent stake in the company.
On Tuesday, at 12:54 p.m., IIFL Finance Ltd shares were trading at Rs 589.35 per share, up percent from the previous close price. The company has a market capitalization of Rs 22,473 crore.
According to the bulk deal data, Foreign Institutional Investor(FII) FIH Mauritius Investments offloaded 2,16,02,000 crore shares, representing a 5.7 percent stake in IIFL Finance Ltd via open market transactions.
The shares were sold at an average price of Rs 554.64 apiece, taking the transaction value to Rs 1,198.13 crore. After this transaction, FIH Mauritius Investments’ shareholding in the company has declined to 15.2 percent from 20.90 percent in IIFL Finance
Meanwhile, Nomura India Investment Fund Mother Fund purchased 26,20,411 equity shares, or 0.68 percent, for Rs 144.4 crore at an average price of Rs 551.01 per share, and Mansi Share & Stock Advisors Private Limited purchased 21,44,039 equity shares at an average price of Rs 555.42 per share.
IFL Finance Ltd is a diversified NBFC in India engaged in the business of loans and mortgages along with its subsidiaries. The company offers a wide spectrum of products such as Home loans, Gold loans, business loans, microfinance, capital market finance, and developer & construction finance, etc.
In the previous five years, the company’s loan AUM has increased by 23 percent CAGR to Rs 64,638 crore in FY23. The firm has over 4,596 branches that cater to over 46 lakh consumers as of H1FY24.
The company has retail loans of 93 percent of its total loan book consisting of various types of retail loans, and the rest 7 percent are wholesale loans.
The company’s revenue has increased by 22 percent yearly, from Rs 2,026 crore in Q2FY23 to Rs 2,476 crore in Q2FY24. During the same timeframe, Net profit has increased by 32 percent from Rs 397 crore to Rs 526 crore.
IIFL Finance’s shares have gained 20 percent in the last six months and 23 percent in a year.
Written by Omkar Chitnis
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