IIFL Finance Ltd Stock Analysis

IIFL Finance Limited (Erstwhile ‘IIFL Holdings Limited’) is one of the leading players in the Indian financial services space. Prior to the Composite Scheme of Arrangement (effective May 13, 2019), IIFL Finance Limited was engaged in the business of financing, asset and wealth management, retail and institutional broking, financial products distribution and investment banking through its various subsidiaries.

IIFL Finance is a first generation venture which started as a research firm in 1995. IIFL Finance Limited was a pioneer in the retail equity broking industry with its launch of 5paisa trading platform which offered the lowest brokerage in the industry and freedom from traditional ways of transacting. IIFL’s evolution from an entrepreneurial start-up in 1995 to a full range diversified financial services group is a story of steady growth by adapting to the dynamic business environment, without losing focus on its core domain of financial services.

Building on the strength of over 25 years of expertise, IIFL Finance Limited (IIFL Finance) is one of India’s largest and most trusted financial services provider. After the demerger of IIFL Securities Limited and IIFL Wealth Management Limited, IIFL Finance, along with its subsidiaries IIFL Home Finance and Samasta Microfinance, is focussed on consumer lending.

Business area of the company

IIFL Finance offers diverse product spectrum comprises home loans, gold loans, business loans including loans against property and MSME financing, microfinance, construction and real estate and capital markets finance. With a strong foundation, retail focused strategy, and transparent and ethical business operations, the company continues to deliver excellent service offerings and sustainable growth. 

Products

• Demat Account
  
• Home Loan
  
• Personal Loan
  
• Gold Loan
  
• Business Loan
  
• Loan Against Property
  
• NRI Services
  
• Realty
  
• Institutional Equities
  
• Asset Management
  
• Investment Banking

Awards

FY2018-19

• Received the ‘Best Customer Services Excellence in Financial Services’ award for the CategoryCustomer Service and Loyalty at the World Quality Congress and Awards 2018
  
• Received the ‘Digital Innovation Award’ under the Cloud Category at Indian Express Group BFSI Awards
  
• Received the ‘Best On-boarding Solution’ award at People Matters Learning and Development Conference
  
• Recognised as a ‘Disruptor’ in BFSI sector for innovation through technological intervention in NBFC space by ET Now and Broadcast One
  
• Mr. R Venkataraman featured as the Best CEO in Business World listing for large category firms
  
• KUTUMB An Initiative for Green Affordable Housing won best Green Initiative in Affordable Housing segment at ET Now Green Future Leadership Awards 2019
  
• Received ‘The Best Affordable Housing Finance Company of the Year’ award at ABP News BFSI Awards 2018
  
• Awarded as the ‘Best Performing Primary Lending Institution’ under CLSS for EWS/LIG - Second
  
• Won the ‘Most Promising Brand for Housing Finance’ by Times Network 

FY2019-20

• Received golden peacock award for risk management from The Institute Of Directors at Singapore Global Convention On Board Leadership & Risk Management.
  
• Ranked as India’s most trusted Non-Banking Financial Company (NBFC) in a select list of top 10 NBFCs to watch in 2019 by the Insights Success magazine
  
• Won the ‘Best Fintech NBFC of the Year Award’ at the India NBFC Excellence Awards  2019 Recognised as one of the ‘Most Promising Brands’ in the BFSI segment by The Economic Times
  
• The Economic Times recognised Chairman Mr.Nirmal Jain, as one of the ‘Most Promising Business Leaders of Asia’ for demonstrating exemplary leadership qualities
  
• Received the ‘Most Admired Service Provider in Financial Sector’ award at the ET Now World BFSI Awards
  
• Received the ‘Great Place to Work’ certification
  
• Received Tata Institute of Social Sciences and LeapVault Award for the ‘Best on the Job Training Program’ at the Chief Learning Officers Summit in Mumbai
  
• Received the ‘Best ATL Campaign’ award at mCube Awards for ‘IIFL Bonds Campaign’
  
• Received the ‘Best Communications Strategy of the Year’ award at the Corporate Communication and PR Summit
  
• IIFL Finance legal team included in ‘The Legal 500’s GC Power list: India Teams 2019’
  
• Featured among the top 25 companies in ‘India’s Best Workplaces in BFSI 2020’
  
• IIFL awarded ‘Great Place to Work’ certification for the year 2019-20

Milestones

• 1995: Commenced operations as an Equity Research firm
  
• 1997: Launched research products of leading Indian companies, key sectors and the economy Client included leading FIIs, banks and companies. 
  
• 1999: Launched www.indiainfoline.com 
  
• 2000: Launched online trading through www.5paisa.com Started distribution of life insurance and mutual fund 
  
• 2003: Launched proprietary trading platform Trader Terminal for retail customers 
  
• 2004: Acquired commodities broking license
  
• 2004: Launched Portfolio Management Service 
  
• 2005: Maiden IPO and listed on NSE, BSE
  
• 2006: Acquired membership of DGCX
  
• 2006: Commenced the lending business
  
• 2007: Commenced institutional equities business under IIFL
  
• 2007: Formed Singapore subsidiary, IIFL (Asia) Pte Ltd
  
• 2008: Launched IIFL Wealth
  
• 2008: Transitioned to insurance broking model  
  
• 2009: Acquired registration for Housing Finance
  
• 2009: SEBI in-principle approval for Mutual Fund
  
• 2009: Obtained Venture Capital license
  
• 2010: Received in-principle approval for membership of the Singapore Stock Exchange
  
• 2010: Received membership of the Colombo Stock Exchange
  
• 2011: Carlyle Group increased its stake in India Infoline Group to 9 percent through secondary-market purchases
  
• 2012: India Infoline Finance, the NBFC arm of India Infoline Group, India’s leading financial services provider, received registration from Pension Fund Regulatory and Development Authority (PFRDA) to act as Aggregator under National Pension System (NPS).
  
• 2014: IIFL Wealth acquires India Alternatives
  
• 2014: The Company has changed its name from India Infoline Ltd. to IIFL Holdings Ltd.
  
• 2014: Set up advisory services for succession and estate planning in IIFL Wealth Management
  
• 2015: Launched mobile trading platform
  
• 2016: 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.-
  
• 2016: 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.
  
• 2016: 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.
  
• 2018: Launched IIFL Collection mobile app for collection officers
  
• 2019: Enhanced the in house new Loan Origination System for salaried persons, which can be accessed on tablets, enhancing the digital on-boarding process
  
• 2020: Digital personal/working capital loans scheme launched in the period of pandemic to support existing customers
  
• 2020: IIFL Finance collaborates with CSB Bank
  
• 2020: 430 new branches added