Shares of IIFL Holdings surged as much as 11.6 per cent to hit fresh 52-week high of Rs 249 after the financial services company announced that UK-based CDC Group would invest Rs 1,000 crore in its non-banking finance company India Infoline Finance Ltd (IIFL Finance).
CDC Group is a UK government-owned development finance institution.
CDC's investment will help IIFL group in expanding the financing business and address the capital needs of under-served segments.
"The proposed investment is by way of compulsorily convertible preference shares (CCPS) which on conversion will result in about 15 per cent equity for CDC in IIFL Finance on a fully diluted basis. The proposed transaction is subject to necessary regulatory approvals,"
IIFL Holdings said in a statement.
As of March 31, 2016, IIFL Finance's total loan book stood at Rs 17,770 crore. It reported net profit of Rs 340 crore in FY16.
As of 1:30 p.m., IIFL Holdings traded 8.6 per cent higher at Rs 242.25, outperforming the Nifty which was down 0.4 per cent.
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