IIFL Finance EGM 2026: Seeks Nod for ₹2,400 Cr RPT with IIFL Home Finance

IIFL Finance calls EGM on March 20, 2026, to approve a material modification to related party transactions with its subsidiary, IIFL Home Finance, increasing the limit to ₹5,492 crore.

Mumbai: IIFL Finance Limited (NSE: IIFL, BSE: 532636) has called for an Extra-Ordinary General Meeting (EGM) of its shareholders to seek approval for a significant increase in related party transactions (RPTs) with its material subsidiary, IIFL Home Finance Limited (IIFL HFC).

According to the notice issued to stock exchanges on February 26, 2026, the EGM will be held virtually on March 20, 2026, at 11:00 AM IST. The primary agenda is to approve an Ordinary Resolution for a "Material Modification" to existing RPTs, involving an additional ₹2,400 crore in transactions.

Details of the Proposed Transaction

The proposed modification involves adding two new categories of transactions with IIFL Home Finance:

Direct Assignment (DA) Sale of Loans: ₹1,200 crore
Sale of Loans: ₹1,200 crore

If approved by shareholders, this will increase the cumulative limit for transactions with IIFL HFC from the previously approved ₹3,092 crore to a revised total of ₹5,492 crore.

The existing approved transactions, such as Inter-Corporate Deposits (ICDs), investments in debentures, and cost allocations, will remain unchanged. The company has specified that all transactions will be conducted in the "ordinary course of business" and on an "arm's length basis."

Strategic Rationale Behind the Move

In the explanatory statement attached to the EGM notice, IIFL Finance outlined the strategic rationale for consolidating loan portfolios within IIFL Home Finance. The company stated that this realignment is expected to:

Enhance Operational Efficiency: By integrating management and harmonizing systems, the company aims to streamline administration and monitoring.
Improve Collection Performance: A unified collection infrastructure is anticipated to enable coordinated recovery efforts.
Strengthen Risk Management: Consolidation is expected to foster a more robust and comprehensive portfolio oversight framework.
Reduce Functional Duplication: The move aims to cut overlap and improve overall cost efficiency.

The company emphasized that this initiative aligns with its long-term strategic priorities of simplifying group structures and adhering to regulatory expectations regarding group-level exposure management.

Governance and Approval Process

In compliance with Regulation 23 of the SEBI (LODR) Regulations, 2015, which governs material related party transactions, the proposal has already received the necessary approvals:

Audit Committee: Approved via circulation on February 25, 2026.
Board of Directors: Approved at its meeting held on February 25, 2026.

The Audit Committee also reviewed a certificate issued by the Managing Director and CFO regarding the transaction, as mandated by industry standards.

Key Information for Shareholders

EGM Date: March 20, 2026 (11:00 AM IST) via Video Conferencing (VC).
Cut-off Date: March 13, 2026 (to determine voting eligibility).
Remote E-voting Period: From March 16, 2026 (9:00 AM) to March 19, 2026 (5:00 PM).
Voting Platform: MUFG Intime India Private Limited (InstaVote).

The company has appointed CS Nilesh Shah of M/s. Nilesh Shah and Associates as the Scrutinizer to oversee the e-voting process in a fair and transparent manner.

About IIFL Finance and IIFL Home Finance

IIFL Finance is a prominent non-banking financial company (NBFC) in India, offering a wide range of products including loans, finance, and advisory services.

IIFL Home Finance Limited, a material subsidiary, is a housing finance company registered with the National Housing Bank (NHB) and a key player in the affordable housing segment. IIFL Finance holds a 79.59% stake in IIFL HFC.

The outcome of the shareholder vote will be announced after the EGM and communicated to the stock exchanges.