IIFL Finance raises stake in microfin arm IIFL Samasta to 99 pc

IIFL Finance on Thursday said it has raised its stake in subsidiary company IIFL Samasta Finance by acquiring over 12.4 crore shares from wholly-owned arm IIFL Home Finance for Rs 259 crore.

With this additional holding representing 25 per cent of equity share capital, the stake of IIFL Finance has increased to 99.41 per cent from 74.41 per cent earlier in IIFL Samasta.

''The said transaction was completed on July 27, 2022, and accordingly, the company's shareholding in IIFL Samasta increased from 74.41 per cent to 99.41 per cent,'' IIFL Finance said in a regulatory filing.

The objective of purchase is to consolidate shareholding of the company in IIFL Samasta, it said, adding the stake buy happened for a total cash consideration of Rs 259 crore at Rs 20.80 per share.

IIFL Samasta is a microfinance institution that caters to the financial needs of women borrowers. It provides small-ticket microfinance loans to self-employed women, through organised Joint Liability Groups (JLGs).

In 2021-22, Samasta's revenue stood at Rs 1,012.78 crore.

Shares of IIFL Finance closed 1.81 per cent up at Rs 351.75 apiece on BSE.