IIFL Finance rallies 8% as home loan arm inks Rs 2,200-cr deal with ADIA

Shares of IIFL Finance rallied 8 per cent to Rs 356.70 on the BSE in Friday’s intra-day trade as Abu Dhabi’s Abu Dhabi Investment Authority (ADIA) plannned to invest Rs 2,200 crore in IIFL Home Finance for a 20 per cent equity stake.

“IIFL Home Finance on Thursday June 9, 2022 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 ADIA,” IIFL Finance said in statement. The deal completion is subject to regulatory approvals.

IIFL Home Finance proposes to use the additional capital to continue its granular expansion strategy into new markets to address the significant and growing demand for housing loans.

IIFL Home Finance is a wholly-owned subsidiary of IIFL Finance engaged in the business of providing home loans, loans against property and construction finance. The company has assets under management of Rs 23,617 crore as of March 31, 2022.

IIFL Finance is one of the leading retail-focused diversified NBFCs in India, engaged in the business of loans and mortgages along with its subsidiaries – IIFL Home Finance and IIFL Samasta Finance.