IIFL board may consider IPO for housing finance company arm in 3-6 months, says MD

Nirmal Jain, Founder, IIFL Group and Managing Director, IIFL Finance

IIFL Finance’s board is evaluating plans for an initial public offering of its housing finance subsidiary, IIFL Home Finance, within the next three to six months, according to group founder Nirmal Jain. The financial services group may also seek new investors for its microfinance subsidiary IIFL Samasta Finance.

“Listing discussions constitute material information requiring exchange disclosures. We plan to present this to the board in the coming months,” Jain stated, noting that IIFL Home Finance has external stakeholders. Regarding the microfinance subsidiary, he added: “The MFI sector has stabilized post-recovery, creating opportunities for strategic partnerships. While no divestment talks are currently active, we remain open to suitable investors.”

IIFL Home Finance, with assets under management of ₹39,628 crore in Q3, is 80% owned by the parent company while Abu Dhabi Investment Authority holds the remaining stake. The group fully owns IIFL Samasta Finance, which reported ₹9,681 crore in AUM.

Income Tax Audit Update

Jain addressed investor concerns following recent share price volatility triggered by disclosure of a special income tax audit. “This procedural review stems from last year’s standard inspection where officials needed deeper transaction analysis in specific areas,” he explained. The process involves examining millions of transactions across business segments like gold loans.

“We anticipate no material financial impact from this audit,” Jain emphasized. “Resolving this through formal review provides clearer outcomes than speculative assessments.”

Growth Outlook

IIFL Finance recently reported a six-fold increase in Q3 consolidated net profit to ₹501 crore, with total AUM growing 38% year-on-year to ₹98,336 crore. Jain highlighted renewed growth potential following the RBI’s removal of gold loan restrictions.

“Maintaining operational capacity during restrictions created cost inefficiencies,” he noted. “With full operations restored, we anticipate better operating leverage and return on equity improvement toward our historical 20% benchmark.” The company aims for 20-25% annual AUM growth alongside net interest margin expansion. Near-term fund-raising plans include ₹1,000-1,500 crore via NCD issuance in February.

Published on January 26, 2026