IIFL Finance shares fall 6% despite board’s nod to allotment of 50k debentures

Shares of IIFL Finance Ltd fell over 6% in the afternoon session today after the NBFC’s board of directors approved allotment of 50,000 non-convertible debentures on private placement basis. The value of the debentures is Rs 500 crore.

Shares of IIFL Finance slipped 6.02 per cent to Rs 336.10 against the previous close of Rs 359.55 on BSE. The stock opened higher at Rs 361.50 on BSE.

“The Finance Committee of the Board of Directors of the Company vide Resolution dated March 20, 2024 approved allotment of 50,000 (Fifty Thousand) Non-Convertible Debentures namely Secured Redeemable Non-Convertible Debentures– Series D25 of Face Value of INR 1,00,000 (Rupees One Lakh) each, for cash at par, aggregating to INR 5,00,00,00,000 (Rupees Five Hundred Crores) on Private Placement Basis,” said IIFL Finance.

In a year, the stock has lost 20 per cent. Total 1.42 lakh shares changed hands amounting to a turnover of Rs 4.93 crore on BSE on Wednesday. The market cap of the firm slipped to Rs 12,923 crore.

In terms of technicals, the relative strength index (RSI) of IIFL Finance stands at 23.9, signaling it's trading in the oversold zone. IIFL Finance shares are trading lower than the 5 day, 10 day, 50 day, 100 day and 200 day moving averages.

IIFL Finance stock has a one-year beta of 0.6, indicating low volatility during the period.

IIFL Finance is among 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.