IIFL Finance Ltd. shares plummeted as much as 9% on Thursday, April 23, marking the biggest single-day fall in nearly three months for the company. According to reports from CNBC TV18, the stock has declined in three out of the last four trading sessions and emerged as the top loser on the Nifty 500 index. This represents the steepest decline since the stock fell 10.5% on February 1 during the Union Budget announcement.
The stock decline occurred on strong volumes that were significantly higher than the 20-day average. As reported by CNBC TV18, 43 lakh shares of IIFL Finance changed hands so far, compared to the 20-day average of 7.5 lakh shares at this time of the day. This elevated trading activity indicates heightened investor interest and selling pressure during the session.
The recent volatility stems from regulatory scrutiny after the Income Tax Department directed the company to undertake a special audit of its accounts for a block period spanning FY20 to FY25 under Section 142(2A) of the Income Tax Act. According to CNBC TV18, IIFL Group founder Nirmal Jain had earlier termed the issue 'a complete misunderstanding', explaining that such audits are common in businesses with large and complex operations, particularly in segments like gold loans where the company services over 6.5 million customers.
Jain explained that the company has already completed reassessments for the relevant period and paid a nominal additional tax of around ₹1.2–1.3 crore. As reported by CNBC TV18, he emphasized that 'We are 100% confident that there's no extra, no further liability we expect on this account'. The scrutiny follows earlier regulatory actions, including restrictions imposed by the Reserve Bank of India on IIFL's gold loan business in 2024, which were subsequently lifted.
