CDC Group plc to invest Rs 1,000 cr in IIFL Finance

Mumbai, July 20 (IANS) IIFL Holdings Ltd on Wednesday said that CDC Group plc, a British government owned development finance institution, will make an investment of about Rs 1000 core in its wholly owned subsidiary, India Infoline Finance Ltd (IIFL Finance).

The investment will help the company in expanding the financing and address the capital needs of under-served segments through diversified offerings, it said in a statement.

"The proposed investment is by way of Compulsorily Convertible Preference Shares (CCPS) which on conversion will result in about 15 percent equity stake for CDC in IIFL Finance on a fully diluted basis. The proposed transaction is subject to necessary regulatory approvals," the company said.

"It was the first private equity investor in the company during our start-up phase in 1999. We are excited to have them back as a partner. Our strategy of focusing on small ticket retail credit to under-served geographies and segments resonates with the investment objectives," said IIFL Group's Founder Nirmal Jain.

The non-banking financial company posted Rs 3.4 billion profit in the last fiscal and its loan book stood at Rs 177.7 billion by end of the last fiscal.

"The investment of new capital will help the company grow further, with a particular focus on affordable housing and micro and SME financing," said Srinivasan Nagarajan, Head-South Asian at CDC.