IIFL Finance Surge Nearly 1% as CRISIL Upgrades Outlook to Positive

IIFL Finance witnessed a 1.3% increase in its shares at the opening bell on November 21, a day after credit agency CRISIL revised its outlook from ‘stable’ to ‘positive.’ The stock, trading at Rs 616 as of 9:20 am on the same day, reflected the positive market sentiment following CRISIL’s announcement.

In a regulatory filing, IIFL Finance disclosed that CRISIL had not only upgraded the outlook on its long-term debt instruments and bank facilities but also affirmed the long-term rating at ‘AA’ and short-term rating at ‘A1+.’ The positive outlook revisions were extended to IIFL Finance subsidiaries, namely IIFL Home Finance Limited and IIFL Samasta Finance Limited.

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CRISIL’s November 20 release highlighted the rationale behind the outlook revision, citing the strengthening market position of the IIFL Finance group and the anticipated sustained improvement in its profitability. The agency underscored that the ratings are bolstered by the group’s comfortable capitalization with improved gearing and a diversified portfolio, with a majority contribution from inherently less risky asset classes.

On November 16, IIFL Finance had announced a significant move, with its board approving a Rs 200 crore investment in its material subsidiary, IIFL Samasta Finance Limited. This investment entails the subscription of approximately 7.48 crore fully paid-up equity shares at Rs 26.74 apiece, with a face value of Rs 10.

As of 9:49 am, IIFL Finance shares continued to trend upward, trading 0.23% higher at ₹609.45.