IIFL Holdings demerger likely in Q1FY20'

The restructuring of financial services firm IIFL Holdings through demerger of its finance, wealth and capital businesses into three separate entities, and listing them on the bourses is likely to be complete in the first quarter of the fiscal 2019-20.

The ongoing NCD issue of the group has already received subscription worth Rs 1,000 crore out of the base issue size of Rs 250 crore, and it is hoping to garner the targeted Rs 2,000 crore from the retail issue soon.

"The demerger process is on track and the same is expected to be complete by April-May (2019-20)," IIFL Holding MD R Venkataraman told PTI.

It is part of the company's strategy to reorganise the corporate structure to block shareholders' value, and let the niche verticals focus on their expertise to grow independently.

"By separating them, we will allow them to grow to their full potential," Chairman Nirmal Jain had said earlier.

The three units -- IIFL Holding demerger following three companies -- IIFL Finance (loans and mortgages), IIFL Wealth (wealth and asset management) and IIFL Securities (capital markets) -- will be created and listed simultaneously.

"The reorganisation will prepare the IIFL group companies for the growth opportunities amid intensifying competition in the coming decade," Venkataraman said.

The demerger will result in an equity shareholding mix in which the owner of seven shares of IIFL Holdings will get seven shares of IIFL Finance, seven shares of IIFL Securities and one share of IIFL Wealth.

At present, IIFL Holdings' loans and mortgages business has an asset under management in excess of Rs 36,000 crore.

The company is aiming at a growth of 20-25 per cent in FY19.