IIFL Finance Share Price Recovers from Day’s Low: What Spooked It?

On January 28, 2025, IIFL Finance Limited’ share price experienced significant intraday volatility. The stock plunged to a low of ₹326 on the NSE but recovered later, trading at ₹353.25 as of 2:57 PM, down by 1.23%. This decline occurred despite a market rebound, leaving investors questioning the underlying cause.

Income Tax Raids Trigger Concern

According to news reports, the Income Tax (I-T) Department conducted search operations at the IIFL Group’s offices on January 28, 2025. These raids are reportedly linked to allegations of tax evasion and are being carried out across multiple locations, including several floors of the 360 ONE WAM (formerly IIFL Wealth) building in Mumbai’s Kamala Mills area.

The uncertainty caused by these investigations has likely contributed to the stock’s intraday decline.

Acquisition Announcement Amid Raids

On January 27, 2025, the board of 360 ONE WAM, part of the IIFL Group, approved 2 major acquisitions:

• Batlivala & Karani Securities India for ₹1,774 crore
• Batlivala & Karani Finserv for ₹110 crore

Leadership Resignation Adds to Uncertainty

Mr Bharat Aggarwal, designated as SMP (Senior Management Personnel), resigned as the Business Head of Unsecured Lending at IIFL Finance. His resignation became effective on January 27, 2025, at the close of business hours. Leadership changes during periods of heightened scrutiny often add to market uncertainty.

IIFL Group’s Silence on Ongoing Developments

As of now, the IIFL Group has not issued an official statement regarding the ongoing tax raids or recent developments. Investors and market participants are keenly awaiting. However, IIFL Capital postponed its board meeting to review its Q3r results due to “certain exigencies,” as disclosed by the company. Investors may need to watch for official announcements and further developments for a clearer picture.

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