After being hit by the NBFC crisis in September 2018, IIFL Finance has emerged stronger as debt market investors continue to repose confidence in the company. The well-diversified NBFC raised long-term loans worth ₹27.21 billion in Q3FY20, after mobilising funds worth ₹4.03 billion and ₹17.23 billion in Q1 and Q2, respectively. Due to its healthy performance, cost of funds was down by 9 basis points QoQ, whereas assets under management grew 3% to ₹360.15 billion. It also reported better asset quality as net and gross NPA dropped to 2.3% and 1% of the overall loan book from 2.5% and 1.5%, respectively. “We manage our asset liability mismatch diligently and conservatively, with a surplus in all buckets,” said the management in its latest investor presentation.
In the money
As the stock bounces back from its 52-week low, outgoing IIFL CFO Prabodh Agrawal sells shares worth ₹79 million
The market has taken note of the performance with the stock gaining 91% from its 52-week low of ₹99 in August 2019. As it rallied, outgoing IIFL CFO Prabodh Agrawal, who has been with the company since 2007, sold shares worth ₹79 million in February, making it his second disposal in a year. After the latest disposal, his stake dropped from 0.34% to 0.22%, which is worth ₹131 million currently. Earlier, in November 2019, he had sold shares worth Rs. 236 million.
Mutual funds, too, have trimmed their stake. Aditya Birla Sun Life MF, which held 0.37% stake in September 2019, exited the company in the December quarter. Motilal Oswal MF has a negligible stake of 0.002%. However, foreign portfolio investors have increased their stake over the same period — from 24.30% to 24.46%. While, Prem Watsa controlled Fairfax is the biggest strategic investor through HWIC Asia Fund Class A Shares with 8.87% holding, the other major investor is Ward Ferry's Asian Reconnaissance Fund with 4.01%.