Shares of IIFL Capital Services soared over 13 percent in the afternoon session on March 24, after the firm announced changes to its top management.

IIFL Capital Services' Managing Director and member of board, Nemkumar H stepped down to focus exclusively on business development, and is now the designated Chief Growth Officer. R. Venkataraman will take over the role of Managing Director, while Rekha Warriar, an independent director, has been appointed as the Chairperson of the board.

At 2 pm, IIFL Capital Services shares were quoting Rs 246.40, higher by 12.5 percent on the NSE.

Nemkumar H had joined IIFL in June 2007 and is a founding member of the Institutional Equities (IE) business. IIFL’s IE business comprising principally of institutional broking and investment banking has scaled up well over the years.

"Over the past few months, IIFL Capital Services Ltd. has embarked on a new growth journey with a focus to widen revenue streams, enhance growth potential and improve quality of earnings. The recent foray into wealth management is one of the key new initiatives that the company has taken to move towards this goal," said the firm in a filing with the bourses.

The firm added that Nemkumar has nearly three-decade experience in equity research, institutional equities, investment banking and building mutually enriching relationships with investors and corporates.

As  a result, for the company as well as all its stakeholders, the board believes that a better value add would be to have his undiluted focus on business development. "Accordingly, the Board has designated him as Chief Growth Officer and accepted his resignation from the post of Managing Director," said the firm.

Further, the company has appointed Rekha Warriar as Chairperson of the Board and R. Venkataraman, the co-promoter of IIFL Group, as the Managing Director. This ensures separation of the roles of Chairperson and Managing Director, which aligns with good corporate governance standards, added the firm.

"Rekha has been associated with the Company since 2019 as an Independent Director. With over 31 years of extensive experience at the Reserve Bank of India (RBI), Rekha has gained unparalleled expertise in areas such as Foreign Exchange, Financial Stability, Internal Debt Management, and Rural Development," IIFL noted.