MUMBAI: Canadian billionaire Prem Watsa‘s Fairfax group, an early investor in IIFL Finance, has dedicated to offering up to $200 million in liquidity assist to the finance company.
The announcement got here because the company’s shares hit the 20% decrease circuit for the second consecutive day after RBI barred the lender from extending gold loans, which kind practically a 3rd of its credit score portfolio.
Shares of JM Financial additionally witnessed heavy promoting in Wednesday’s market after RBI banned one in every of its arms from financing IPOs and lengthening loans in opposition to shares. The determination by the banking regulator raises the potential for the company dealing with scrutiny by market regulator Sebi, market gamers mentioned. JM Financial’s shares opened 15% decrease and closed 11% down at Rs 85.
In a press release to the alternate, IIFL mentioned that RBI’s embargo has raised liquidity considerations among the many company’s traders and lenders. In response to these considerations, Fairfax India has agreed to make investments up to $200 million in liquidity assist on phrases to be mutually agreed upon and topic to relevant legal guidelines, together with regulatory approvals, if any. The two companions didn’t disclose whether or not the funding might be in the type of fairness or debt.
“We have been long-term investors in IIFL and have full trust and confidence in the company’s strong management team…,” mentioned Prem Watsa, chairman of Fairfax India.
The announcement got here because the company’s shares hit the 20% decrease circuit for the second consecutive day after RBI barred the lender from extending gold loans, which kind practically a 3rd of its credit score portfolio.
Shares of JM Financial additionally witnessed heavy promoting in Wednesday’s market after RBI banned one in every of its arms from financing IPOs and lengthening loans in opposition to shares. The determination by the banking regulator raises the potential for the company dealing with scrutiny by market regulator Sebi, market gamers mentioned. JM Financial’s shares opened 15% decrease and closed 11% down at Rs 85.
In a press release to the alternate, IIFL mentioned that RBI’s embargo has raised liquidity considerations among the many company’s traders and lenders. In response to these considerations, Fairfax India has agreed to make investments up to $200 million in liquidity assist on phrases to be mutually agreed upon and topic to relevant legal guidelines, together with regulatory approvals, if any. The two companions didn’t disclose whether or not the funding might be in the type of fairness or debt.
“We have been long-term investors in IIFL and have full trust and confidence in the company’s strong management team…,” mentioned Prem Watsa, chairman of Fairfax India.
