Press Release

For immediate publication August 3, 2011

IIISL (IIFL Group) to open a Public Issue of Secured Redeemable Non-Convertible Debentures (NCDs) of Rs 750 crores on August 4, 2011

Up to 11.9% p.a. interest on 5 Year Secured NCDs

India Infoline Investment Services Limited (IIISL or the Company), an NBFC subsidiary of India Infoline Limited (IIFL) will open, its maiden public issue of Secured Redeemable NCDs of the face-value of Rs. 1,000 each aggregating to Rs 375 crores, with an option to retain over-subscription up to Rs 375 crores, aggregating up to a total of Rs. 750 crores (the Issue). The NCD Issue with 3 investment options and yield on redemption of up to 11.90% (per annum) opens on August 4, 2011 and closes on August 12, 2011. The NCDs will be listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) and will have a tradable lot size of 1 NCD. The face value of NCD is Rs 1,000 and minimum application is Rs 5,000. The NCDs proposed under this Issue have been rated [ICRA]AA- (stable) by ICRA, and CARE AA-' by CARE. The above ratings indicate high degree of safety for timely servicing of financial obligations and these instruments carry very low credit risk. There are three investment options: Option I (Annual interest payment): The redemption date or maturity period is 36 months from the deemed date of allotment and the coupon rate is 11.7% p.a. The interest payment is annual and the face value plus any interest that may have accrued is payable on redemption. Option II:. NCDs will be redeemed at Rs 1446.18 at the end of 40 months from the deemed date of allotment with an effective yield of 11.70% per annum. Option III (Annual interest payment): The redemption date or maturity period is 60 months from the deemed date of allotment. The coupon rate is 11.9% p.a. for Category III investors and 11.7% p.a. for others. The interest payment is annual and the face value plus any interest that may have accrued is payable on redemption. The funds raised through this Issue will be used by the Company for various

financing activities. The Lead Managers to the Issue are Axis Bank Limited, JM Financial Consultants Private Limited and A.K. Capital Services Limited. The Prospectus is available on the website of the Company at www.iiflinvestments.com; and Exchanges at www.nseindia.com; www.bseindia.com and on the websites of Lead Managers at www.axisbank.com, www.jmfinancial.in and www.akcapindia.com. About IIISL IIISL, a subsidiary of India Infoline Limited (IIFL) is registered with Reserve Bank of India as a non-banking finance company. IIISL offers a broad suite of lending and other financial products to both retail and corporate clients. The Companys products include Mortgage loans (both retail and corporate mortgage), Capital Market financing (including Loans against Securities, Promoter Funding, Margin Funding, IPO financing and other structured lending transactions ), Gold loans and Healthcare financing. The loan book has witnessed a CAGR of 51.99% over the last three years and stands at Rs 32.89 bn as on March 31, 2011. Mortgage Loans accounted for 60% of the Loan Book, Capital Market Finance accounted for 35% of the Loan Book and Gold Loans accounted for 4% of the Loan Book. Health Care Finance is a recent product which has been introduced in FY 2011. Net NPAs as on March 31, 2011 was 0.36% of the total loan book. As on March 31, 2011 the Companys capital adequacy ratio stood at 29.95%, much above the minimum capital adequacy requirement of 15% stipulated by RBI for FY11. Over the past several years, the Company has expanded its presence and today has a network of over 500 branches and employee strength of over 2,000 employees. IIISLs promoter, IIFL is a reputed financial services organization having presence across India. The global footprint extends across geographies with offices in New York, London, Hong Kong, Singapore, Dubai, Mauritius and Colombo. It is listed on BSE and NSE. IIFL Groups services and products include retail broking, institutional equities, commodities and currency broking, wealth advisory, credit & finance, insurance broking, asset management, financial products distribution & investment banking. Disclaimer: India Infoline Investment Services Limited ("IIISL"), is making a public issue of Secured Redeemable Non-Convertible Debentures through Prospectus will be listed on and filed with Registrar of Companies, Maharashtra, Mumbai, National Stock Exchange of India Limited and the Bombay Stock Exchange Limited and Securities and Exchange Board of India (for record purposes). The Prospectus is available on our website at www.iiflinvestments.com, on the websites of the stock exchanges at www.nseindia.com and www.bseindia.com and the respective websites of the LMs at www.axisbank.com, www.jmfinancial.in and

www.akcapindia.com. Investors proposing to participate in the Issue should invest only on the basis of information contained in the Prospectus. For further details contact: Mr. Ashwin Kotian, Adfactors PR, Tel: + 91 98205 31932, ashwin.kotian@adfactorspr.com Ms. Poonam Saraogi, IIISL, Tel: + 91 22-4249 9115, +91 77389 33999, poonam.saraogi@indiainfoline.com