UPDATE 1-India's IIFL Finance to raise up to $242 mln via share, debenture issues

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BENGALURU, March 13 (Reuters) - IIFL Finance said on Wednesday it would raise funds of up to 20 billion rupees ($241.5 million) as the non-bank lender looks to shore up capital after India's central bank barred it from offering gold loans.

The company will raise 15 billion rupees through the issue of shares on a rights basis and five billion rupees through the issue of non-convertible debentures via a private placement, it said in an exchange filing.

The Reserve Bank of India (RBI) earlier this month ordered IIFL Finance to stop sanctioning, disbursing and selling gold loans, citing "material supervisory concerns" in its gold loan portfolio, causing a meltdown in the lender's stock.

The stock has plunged about 35% since the RBI order on March 4.

The company's gold loans under management stood at 246.92 billion rupees as of Dec. 31, accounting for 32% of its total assets.

Last week, IIFL Finance's top shareholder Fairfax India , which holds a 15% stake in the company, agreed to provide up to $200 million in liquidity support to the lender, assuaging liquidity concerns among investors after the RBI order.

Shares of the company settled 3.3% lower on Wednesday ahead of the fundraise announcement. ($1 = 82.8100 Indian rupees) (Reporting by Nishit Navin and Navamya Ganesh Acharya in Bengaluru)