IIFL Finance hires EY for due diligence on potential Samasta stake sale

IIFL Finance has appointed EY to conduct due diligence for a possible stake sale in its MFI arm Samasta, as the lender evaluates strategic options amid pressure on the microfinance portfolio

IIFL Finance, which holds a majority stake in microlender IIFL Samasta, is exploring a stake sale in the company and has appointed EY to conduct due diligence, sources aware of the development said. 

“IIFL Finance and its subsidiaries, including IIFL Samasta, continuously evaluate various strategic opportunities in the ordinary course of business, including potential partnerships, capital raises, restructurings, and portfolio actions, with a view to enhancing long-term shareholder value and strengthening the franchise,” IIFL said in response to a Business Standard query. “However, as a matter of policy, we do not comment on market speculation, unverified reports, or ongoing exploratory discussions,” it added. 

“This is at an early stage. There will be others in the fray, too. We will get a clear picture in the next three to four weeks,” one of the sources said, adding that no decision has been taken on the quantum of stake dilution, if the company proceeds with the sale. 

In an interview with Business Standard last year, Nirmal Jain, founder and managing director of IIFL Finance, had said the company was open to participation by a strategic investor in the microfinance unit to strengthen its capital base. 

As of December 2025, IIFL Samasta had assets under management of ₹9,681 crore, down from a peak of ₹14,211 crore in 2023-24 (FY24), amid stress in the microfinance segment. In the first nine months of 2025–26, it reported a loss of ₹39 crore, compared with a profit of ₹20 crore in 2024–25 and ₹503 crore in FY24. It has a customer base of 2.3 million and nearly 1,600 branches. 

Some media reports had suggested that Piramal Finance was among the interested parties and had held preliminary discussions with IIFL Finance. However, Piramal Finance, in an exchange disclosure on Wednesday, said reports of it being in discussions with IIFL Finance for a stake in IIFL Samasta were “factually incorrect”. 

Sources close to the development said other suitors may emerge as the process progresses. 

Shares of Piramal Finance closed 0.66 per cent lower at ₹1,788.6 on Wednesday on the BSE, while IIFL Finance shares ended 4.22 per cent higher at ₹478.3. 

Piramal Finance is an upper-layer non-banking financial company and focuses on retail loan products such as home loans, loans against property, used-car loans, personal loans, and small-business loans. It also provides wholesale loans with exposure to both real estate and non-real estate sectors. Microfinance is a missing piece in its portfolio, and the lender has been looking to expand its presence in the segment.