The IIFL Finance board has given its nod for raising Rs 1500 crore through a rights issue. Additionally, the Board has also given its approval for raising Rs 500 crore via issuance of non-convertible debentures through a private placement.
The non-banking finance company has approved the fund raising in an effort to shore up capital after the Reserve Bank of India barred the company from disbursing gold loans. Earlier on March 7, Fairfax India Holdings- long time investors in the NBFC had announced $200 million investment as liquidity support to IIFL.
Several key appointments and changes were also announced by the company at the board meeting. Abhiram Bhattacharjee, who currently serves as Chief of Staff, has been re-designated as the Chief Operating Officer.