The wealth management arm of IIFL Holdings Ltd. will use money raised from institutional investors to boost its asset management and non-bank lending businesses, Chairman Nirmal Jain told BloombergQuint in an interaction today.
The company raised Rs 745.71 crore by issuing fresh shares to investors, according to an exchange filing. “After the closure of the transaction, IIFL Holdings will own a 51.11 percent stake in the wealth management arm,” Jain said.
The fund-raise comes at a time the holding company is reorganising its businesses. It plans to independently list its three units—IIFL Wealth, IIFL Finance and IIFL Securities. IIFL Holdings’ investors will get shares of the three entities and the parent will cease to exist, Jain said. The process should take six to eight months depending on regulatory approvals, he said.