Am I correct in understanding that the current gold loan AUM won’t grow until RBI lifts the ban. But the existing borrowers in the gold loan portfolio will keep paying back the lent money plus everything else (Housing Loans etc.) works as is?
Disc. Invested, looking to add more.
Your understanding is correct. But Gold loan is provided for a small duration of time i.e. 6-9 months. So the current loans will become null by Dec 2024. And if company won’t give new gold loans, it means the gold loan book will become zero for IIFL by end of year.
And since expenses will still be same, it will hurt the earnings of company badly. I will be surprised if company is even able to manage current earnings in FY25.
Super informative. The management is ready for a special audit and they have already approached RBI. So given the fact that it will hurt the IIFL more, they will do all out to get the audit done and the ban is getting lifted.
IIFL leadership knows about the urgency of this and hopefully, they should get the ban lifted soon.
I know that Rupeevest is yet to come up with Feb data.
And even Value Research data is also getting changed. The current shares in regular funds are shown as 47,19,11,022, which is different from the screenshot you have posted for Reliance, and this can change in 12 hours. So, Feb data AFAIK, is yet to come in completely.
IIFL’s data from Value Research shows just Groww’s Total Market Index fund’s shares, which have increased. There are other Nifty 500 and small cap indices’ funds from other fund houses like Nippon, Motilal, SBI, ICICI, HDFC, Edelweiss whose AUM is more than Groww, so if Groww had bought, they must have bought too.
So I don’t think the data for Feb has completely come yet, and if funds had exited yesterday and tomorrow, complete data like this will be available after a month.
Not invested in IIFL.
Here is the full page of what you have posted from Trendlyne.
From the same page
Mutual Fund Feb 2024 share holdings and fund action in IIFL Finance Ltd.
3 MFs bought and 0 MFs sold IIFL Finance Ltd. in the month of Feb 2024 for a net change of 244,931 stocks
Not invested in IIFL.
After having two consecutive 40% of draw down, it was expected IIFL to bounce back. This is the market for you. The day RBI lifts ban, hopefully sooner, it may reach to the level of 600+. Now they have a support of $200 M for the liquidity and gold hitting the all time high!
Soon after dooms day story some of the folks will start writing articles and start pouring thoughts and narrative around “IIFL dooms day and Bounce back Story”.
What we witnessed last week is just a tip of the iceberg. Report has deep understanding. 
As expected rating agencies have put their NCDs on
Watch Negative.
Meanwhile board has okayed Fund raising for an amount not exceeding Rs. 1,500 Crores (Rupees Fifteen Hundred
Crores Only) by way of issue of Equity Shares of the Company (“Equity Shares”), on a
right basis (“Right Issue”) to its existing eligible shareholders.
Raising of funds through Issue of Non-convertible debentures on a private placement
basis upto Rs. 500 Crores (Rupees Five Hundred Crores)
What is right issue record and ex date, sir.
I was trying to make sense whether the stock is worth dipping in or not:
With the recent DD , stock prima-face may look attractive , but with RBI guidelines their gold loan book is wiped out.
Now when the gold loan book was growing in excess on 30% and in absence , so consider their remaining loan books remains intact for FY26, though the trust issues created by this fiasco, will have spill affect on their over all loan book, and their other verticals may see a tampered growth, reduction in growth rate in FY26.
Stock might appear attractive based on FY-24 earnings multiples, say about 8-9 PE.
But come FY26 , their EPS estimated might come down to around 35 odd levels, assuming the restriction on gold loans remains through out FY26, which translates to around PE multiples of excess of double digits.
Assuming gold loan restrictions remains in FY26, and currently trading at around 12 odd PE multiples of FY26, is not much attractive when compared to peers like manapuram.
But the catch is if the gold loan restrictions are revoked anywhere between 6-9 months, then the stock is offering value.
But one can never be certain, if RBI revoked gold loan lift in 6-12 months time.
Contradicted openion welcome.
It is very difficult to predict the timelines of “unbanning”. However, there have been times when companies have achieved it within a year. HDFC Bank’s CC ban lasted for around 8 months [HERE]. Mastercard’s ban lasted approx a year [HERE].
In the case of IIFL, management is claiming that they have rectified the issues and going to request a special audit from RBI. If I am not mistaken, the special audits could take 6 months (if successful) but for safer side, I will assume a year.
What we should also consider is the broader implications: the customers, future growth, and possibilities of valuation de-rating under the categorization of poor CG.
Disclaimer: I may or not be invested in any of the names mentioned here. This is not a BUY/SELL recommendation. These are my views and I often go wrong or change my views without being able to inform anyone.
Will Issue Notification To Attach Properties Of IIFL In ₹5,600 Crore NSEL Scam Within Four Weeks: State To Bombay High Court
There is this small piece of info, couldn’t find any more details pertaining to this.
How to avail this as I am existing shareholder, I can buy share at 300?
any one has more update on this?
You should be getting a mail from them with details shortly. You may also write to them at shareholders@iifl.com
