IIFL Finance shares jumped over 8% following founder Nirmal Jain's clarification on the company's tax dispute. According to reports from NDTV Profit, the stock advanced 8.55% intraday to ₹483.65 per share. The scrip was trading 8.37% higher by 10:10 a.m. The benchmark NSE Nifty 50 was up 0.12% during the same period.
The NBFC informed exchanges on Tuesday, May 12 that it received an income tax demand notice for a block period from April 1, 2018, to February 3, 2025. As reported by NDTV Profit, the company stated it has fulfilled all applicable tax liabilities and has sufficient factual and legal grounds to support its position. The company assured that the order will not have any material impact on its financials and operations.
Speaking to NDTV Profit, Nirmal Jain provided reassurance about the tax assessment impact. According to the report, Jain stated there will be no impact of the tax assessment on business. He further mentioned that the company has several tax demands under dispute with the tax department and has enough grounds to contest the assessment.
The positive market response reflects investor confidence in the company's ability to handle the tax dispute. As reported by NDTV Profit, the stock's strong performance contrasted with the broader market's modest gains, indicating specific investor interest in the tax clarification and management's reassuring stance. The broader market context shows continued pressure from foreign investors, while domestic equity flows remain strong.
