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RBI’s embargo has raised liquidity concerns amongst the company’s investors and lenders. In response to these concerns, Fairfax India has agreed to invest up to $200 million of liquidity support on terms to be mutually agreed and subject to applicable laws, it added.
Prem Watsa, chairman, Fairfax India, said, “We have been long-term investors in the IIFL group of companies and have full trust and confidence in the company's strong management team led by Nirmal Jain and R Venkataraman. “
Nirmal Jain, MD and Founder of IIFL Finance commented, “At this crucial juncture, Fairfax India’s and Prem’s generous offer to provide liquidity support is very timely and motivating. We are committed to complying fully with RBI’s directives and growing the business under the regulator’s guidance on the strong foundation of compliance, risk management, and fair practices.”
IIFL Finance, a leading retail-focused NBFC in India, offers loans and mortgages through its subsidiaries. With a wide range of products and a vast customer base, they operate across India through branches and digital channels.
For the quarter ended 31 December 2023, IIFL Finance reported net profit after tax of Rs 545 crore (before non-controlling interest) up 29% y-o-y. Total income (net) grew 28% y-o-y to Rs 1,687.5 crore.
IIFL Finance hit a lower circuit of 20% at Rs 382.80 on the BSE.
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