IIFL Finance Ltd updates on RBI notification regarding AIFs

The Reserve Bank of India has released a notification dated December 19, 2023 bearing No. RBI/2023-24/90 DOR.STR.REC.58/21.04.048/2023-24 on "Investments in Alternative Investment Funds (AIFs)".

IIFL Finance Limited being a Regulated Entity (RE) wishes to provide the following details regarding the impact of the same on IIFL Finance ("The Company") and its subsidiaries:

1. There is an Investment of Rs. 21.37 crs in IIFL Fintech fund where the Company has outstanding debt exposure of Rs. 3.28 crs in one of the downstream investments of the fund.

2. Further all other AIF Investments of the Company aggregating to Rs. 909.81 crs as on current date does not include any downstream investments to which it has a loan or investments exposure currently or in the preceding twelve months. Thus, such Investments in the fund shall have no impact with regard to requirement of additional provisioning or capital adequacy of the Company. These Investments are carried at fair value basis the NAV published periodically by the AIF.

3. The material subsidiary of the Company i.e. IIFL Home Finance Limited holds investments of Rs. 161.07 crs under "Priority Distribution Model" as specified in SEBI circular "SEBI/HO/AFD1/PoD/P/CIR/2022/157 dated November 23, 2022" which if not liquidated shall require 100% deduction from its Capital. However, the subsidiary is adequately capitalized having a CRAR of 47.55% as on September 30, 2023 and the impact of this deduction shall reduce the CRAR to 46.39% if reinstated as of September 30,2023 reflecting a marginal impact of 1.16%.

Shares of IIFL Finance Limited was last trading in BSE at Rs. 663.25 as compared to the previous close of Rs. 643.25. The total number of shares traded during the day was 40284 in over 3380 trades.

The stock hit an intraday high of Rs. 670.50 and intraday low of 646.15. The net turnover during the day was Rs. 26695163.00.

Source : Equity Bulls

Keywords

IIFLFinance INE530B01024 RBINotification AIFs Updates