 "IIFL Holdings rallies 19% on strong Q3 results; scheme of arrangement")
IIFL Holdings has rallied 19% to Rs 865 also its record high on BSE in intra-day trade after the company reported 36% year on year (YoY) growth in consolidated net profit at Rs 3,010 million for the quarter ended December 2017 (Q3FY18). Consolidated income grew 34% at Rs 9,880 million on YoY basis.
The board of directors of the company has declared an interim dividend of Rs 5 per equity share of the face value of Rs 2 each for the financial year 2017-18. The Company has fixed February 08, 2018 as the record date for this purpose.
The boards of IIFL Holdings and its subsidiary companies, at their respective meetings held on January 31, 2018, have decided to reorganize the corporate structure. Currently, the group’s business comprises three distinct business lines, loans and mortgages; wealth and asset management; and capital markets.
The reorganization will result in three listed entities, one for each of the above businesses. The reorganization is subject to necessary statutory and regulatory approvals including NCLT, Mumbai.
“Owner of seven shares of IIFL Holdings’ (the listed company) to own post reorganization seven shares of IIFL Finance; seven shares of IIFL Securities; and one share of IIFL Wealth,” IIF Holdings said in a press release.
The company said it believe that all the core businesses have acquired a critical mass. They need flexibility and independence to grow faster in the rapidly changing technology and innovation driven environment. Each of the core businesses has a differentiated strategy, risk profile and growth trajectory.
Two of the three businesses, namely Loans & Mortgages and Wealth & Asset Management have external private equity investors. They will now have price discovery and exit option on secondary markets, post listing and expiry of lock in periods. Independently listed businesses also make it easier to forge a partnership with a strategic investor. Besides, they would attract different sets of financial investors, helping the process of fair price discovery for all three businesses, it added.
At 10:47 AM; the stock was up 13% at Rs 817 on BSE, as compared to 0.46% rise in the S&P BSE Sensex. The trading volumes on the counter surged more than five-fold with a combined 1.82 million shares changed hands on BSE and NSE so far.
The board of directors of the company has declared an interim dividend of Rs 5 per equity share of the face value of Rs 2 each for the financial year 2017-18. The Company has fixed February 08, 2018 as the record date for this purpose.
The boards of IIFL Holdings and its subsidiary companies, at their respective meetings held on January 31, 2018, have decided to reorganize the corporate structure. Currently, the group’s business comprises three distinct business lines, loans and mortgages; wealth and asset management; and capital markets.
The reorganization will result in three listed entities, one for each of the above businesses. The reorganization is subject to necessary statutory and regulatory approvals including NCLT, Mumbai.
“Owner of seven shares of IIFL Holdings’ (the listed company) to own post reorganization seven shares of IIFL Finance; seven shares of IIFL Securities; and one share of IIFL Wealth,” IIF Holdings said in a press release.
The company said it believe that all the core businesses have acquired a critical mass. They need flexibility and independence to grow faster in the rapidly changing technology and innovation driven environment. Each of the core businesses has a differentiated strategy, risk profile and growth trajectory.
Two of the three businesses, namely Loans & Mortgages and Wealth & Asset Management have external private equity investors. They will now have price discovery and exit option on secondary markets, post listing and expiry of lock in periods. Independently listed businesses also make it easier to forge a partnership with a strategic investor. Besides, they would attract different sets of financial investors, helping the process of fair price discovery for all three businesses, it added.
At 10:47 AM; the stock was up 13% at Rs 817 on BSE, as compared to 0.46% rise in the S&P BSE Sensex. The trading volumes on the counter surged more than five-fold with a combined 1.82 million shares changed hands on BSE and NSE so far.
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