Sanjay Ghodawat University, Kolhapur SIP Project Report
CHAPTER: 2
COMPANY PROFILE
IIFL Finance Limited
2.1 Industry Profile
IIFL Finance Ltd (erstwhile IIFL Holdings Limited) (NSE: IIFL, BSE: 532636) is one of
the leading players in the Indian financial services space, engaged in the business of loans
and mortgages along with its subsidiaries - IIFL Home Finance Limited and Samasta
Microfinance Limited
IIFL’s product offerings include home loans, gold loans, business loans including loans
against property and medium and small enterprise financing, micro finance, developer
and construction finance and capital market finance; catering to both retail and corporate
clients.
IIFL is an Indian diversified financial services company headquartered in Mumbai. The
organization was founded by Nirmal Jain. IIFL and its group companies are backed by
Canadian investor Prem Watsa, private equity firm General Atlantic and CDC Group, the
UK Government's private equity arm.
IIFL is ranked among the top seven financial conglomerates in India and as the top
independent financial services firm in India in terms of market capitalization. Nirmal Jain
is the chairman of the group, while R Venkataraman is the group managing director and
co-promoter.
IIFL has been awarded by Euromoney for the Best Private Banking Services Overall in
India for 2017. It has also been adjudged as the Best Private Bank in India at the Global
Finance Best Private Bank Awards in 2017.
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2.1.1 Operating business of IIFL
The Board of Directors of IIFL Finance Limited at its meeting held on January 31,
2018, had approved the reorganization of IIFL Group, which resulted into three listed
entities – IIFL Finance, IIFL Wealth and IIFL Securities. The merger of India Infoline
Finance Limited with IIFL Finance Limited became effective from 30th March 2020.
As the core businesses of IIFL group have acquired a critical mass, the Company took
the decision to reorganize the corporate structure and create independent entities
focused on their niche verticals. This move is aimed at enabling each business to grow
faster, attract the right talent and become more innovative and efficient. In addition, the
shift from close-knit conglomerate to separate entities will ensure simpler regulatory
compliance, enhanced value for stakeholders along with more synergistic benefits.
Figure 2.1 Group Reorganization of IIFL Finance Ltd.
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2.1.2 IIFL Finance Limited
IIFL Finance Limited (formerly known as IIFL Holdings Ltd.) was incorporated in
2004. IIFL Finance is a Systemically Important - Non-Deposit taking systematically
important, non-deposit accepting non-banking financial company (NBFC-ND-SI),
catering to the rising credit requirements of underserved markets through its diversified
offerings. IIFL Finance along with its subsidiaries is mainly engaged in the financing
business. The Company’s diverse product suite, including Home Loans, Gold Loans,
Business Loans including Loans Against Property and MSME Financing,
Microfinance, Developer and Construction Finance and Capital Market Finance, caters
to a broad spectrum of customers.
2.1.3 IIFL Wealth Limited
IIFL Wealth is one of the fastest growing private wealth management firms in India
with an AUM greater than USD 33 billion. It serves the highly specialized and
sophisticated needs of high net worth and ultra-high net worth individuals, affluent
families, family offices and institutional clients through a comprehensive range of
tailored wealth management solutions.
IIFL Wealth helps more than 6,700 influential families in India and abroad to preserve,
protect and grow their legacy.
2.1.4 IIFL Securities Limited
IIFL Securities Limited (Formerly India Infoline Limited) is one of the largest
independent full-service retail and institutional broking house along with being a
leading investment advisory firm in India providing diversified financial services and
products to corporate, institutional investors, foreign portfolio investors, mutual funds,
insurance companies, alternative investment funds, trusts, high net worth individuals
and retail clients.
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2.2 History of the Company
In the past two decades, IIFL has built a deeply entrenched network catering to retail
customers in over 2,000 business locations across India. We deliver a broad array of
financial services through our network of branches, sub-brokers and franchisees, which
are complemented by our call centers, online and mobile channels. Our reach in 24 states
across India brings us closer to our customers enabling us to address their needs quickly
and efficiently.
2.2.1 1996 – The Inception
A small group of passionate individuals formed Probity Research and Services Pvt. Ltd,
an Information Services Company in October 1995 with a vision to produce high
quality, unbiased, independent research on the Indian economy, business, industries
and corporates. Originally incorporated as Probity Research and Services Pvt. Ltd., the
name of the company was later changed to India Infoline Ltd.
2.2.2 1999 – The launch of www.indiainfoline.com
The genesis of India Infoline stemmed from the thought that if all this research were to
be available free on the internet, the number of users would leapfrog straight from
hundreds to millions. IIFL took the plunge and www.indiainfoline.com was born. CDC
was the first private equity firm to invest in India Infoline funding us to the tune of
US$1mn.
2.2.3 2002 – Survival of the fittest
There was global gloom. The internet bubble burst, the economy witnessed a slowdown
and the stock market was paralyzed by the Ketan Parekh scam. Affecting the market
and leading to survival of the fittest. IIFL conserved resources, focused on survival and
avoided any distractions, which were away from our core competencies i.e., financial
services. affecting the market and leading to survival of the fittest.
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2.2.4 2003 – Trader Terminal - Our proprietary software to revolutionize
online trading
Convinced that technology was a game changer, we launched our 'Trader Terminal', a
pioneering technology built over 3 years, our retail investor's very own Bloomberg. The
product became an instant hit and remains sought after till date.
2.2.5 2005 – Listing on NSE and BSE, IIFL maiden IPO
Listing on the NSE and BSE gave impetus and momentum to expansion, scaling up and
funding and we went full steam ahead with our IPO at Rs 15.2 (adjusted for split) and
shareholders received Rs 15.7 by way of dividend.
2.2.6 2008 – Launch of IIFL Private Wealth Management
IIFL Wealth's business model, in contrast to the traditional industry's practice of driving
revenues through distribution and commission, focuses on advisory fees as core
income, ensuring alignment of interests with those of our clients.
2.2.7 2016 – IIFL finds backing by marquee institutional investors
Fairfax Group belonging to the reputed global investor Mr. Prem Watsa of Canada
invested Rs. 13,414 million (US$ 202 million) by a secondary purchase of IIFL
Holdings shares through an open offer.
CDC Group plc, the United Kingdom’s development finance institution, invested Rs.
10,050 million (US$ 150 million) in the NBFC subsidiary, India Infoline Finance Ltd.
General Atlantic, leading global growth equity firm, invested Rs. 9,038 million (US$
134 million) in IIFL Wealth Management Ltd through fresh issue of equity shares and
additionally Rs. 1,591 million (US$ 23 million) for the acquisition of shares from
employees of IIFL Wealth.
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2.2.8 2018 – IIFL Wealth raised Rs 746cr by way of fresh issue of equity
IIFL wealth raised Rs 746cr by issue of equity to eminent financial investors. IIFL
Wealth issued shares towards Ward Ferry Management Ltd, Rimco (Mauritius)
Limited, Amansa Holdings, General Atlantic Singapore Fund, Steadview and HDFC
Standard Life Insurance.
2.2.9 2019 – Group Reorganization into three listed entities
IIFL Securities Limited and IIFL Wealth Management Limited were demerged and
independently listed. IIFL Holdings Limited was renamed as IIFL Finance Limited.
2.3 Details of the Company
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