IIFL Finance zooms 13% as ADIA to pick 20% stake in home loan arm

NEW DELHI: Shares of IIFL Finance zoomed 13 per cent in trade on Friday after its wholly-owned subsidiary IIFL Home Finance has entered into definitive agreements for raising Rs 2,200 crore of primary capital for a 20 per cent stake from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

The deal completion is subject to regulatory approvals.

This would be one of the largest equity investments in the affordable housing finance segment in India by a financial investor.

IIFL Home Finance proposes to use the additional capital to continue its expansion into new markets to meet the growing demand for housing loans.

Nirmal Jain, Founder, IIFL Group said, “We are delighted to partner with ADIA who bring to the table long term commitment and rich experience of supporting growing businesses. The investment recognizes IIFL Home Finance’s position as one of India’s largest providers of affordable housing loans and how well it is placed to continue to target the large, resilient housing finance market.”

At 3.10 pm, IIFL Finance shares traded at Rs 356, 8 per cent above its previous close of Rs 329. The stock hit day's high of Rs 372.

IIFL Home Finance has created assets under management of Rs 23,617 Cr as of March 31, 2022, with an active customer base of 168,000 across 16 states and 2 union territories with over 200 branches backed by over 3,200 employees.

Monu Ratra, CEO, IIFL Home Finance said, “IIFL Home Finance has built a strong foundation and is at an inflection point as it leverages new strategies such as co-lending, foraying into more granular products and expanding reach across Tier II and Tier III regions. We welcome our new partners and look forward to working with them in the next phase.”

Avendus Capital & IIFL Securities were the financial advisors to IIFL Home Finance for this transaction. IIFL Finance ended flat on Thursday.