Mumbai is home to the diversified financial services firm IIFL Finance Limited, formerly known as IIFL Holdings Limited, d/b/a IIFL and India Infoline Finance Limited. Nirmal Jain established the group. The UK government’s private equity arm, CDC Group, as well as Canadian investor Prem Watsa and private equity company General Atlantic, support IIFL and its group firms. In terms of market capitalization, IIFL is the largest independent financial services company in India and one of the top seven financial conglomerates. The group’s managing director and co-promoter is R Venkataraman, while its chairman is Nirmal Jain.
According to news agency Reuters, IIFL Finance indicated that shareholder Fairfax India will give the business up to $200 million in liquidity support. This occurs just a few days after the RBI forbade IIFL Finance to provide gold loans.
Investors and lenders are becoming more concerned about the company’s liquidity as a result of the RBI ban, according to IIFL Finance. Fairfax India has committed to provide up to $200 million in liquidity support in response to these worries, subject to mutually agreed-upon terms and relevant legislation, including regulatory clearances (if any).
Citing supervisory concerns, including significant discrepancies in assaying and certifying the purity of the yellow metal as per the central bank, the RBI prohibited IIFL Finance Ltd. from disbursing gold loans on Monday. In the next two trading sessions, IIFL Finance’s shares dropped 36% as a result.
