Key Highlights
- Fairfax India to invest ₹2,000 crore in IIFL Capital through preferential allotment.
- Issue price fixed at ₹350 per share for the proposed capital infusion.
- Fairfax India and affiliate to join promoter group with minimum 51% equity stake post transaction.
- Fairfax Group currently holds nearly 30.5% stake in IIFL Capital.
- Transaction subject to shareholder, regulatory and SEBI open offer approvals.
IIFL Capital Services Limited has announced that Fairfax India Holdings Corporation will invest ₹2,000 crore in the company through a preferential allotment of equity shares priced at ₹350 per share. The proposed transaction is expected to increase Fairfax India’s stake in the financial services firm to a minimum of 51%, subject to regulatory and shareholder approvals.
According to the company, Fairfax India will make the investment through its wholly owned subsidiary, FIH Mauritius Investments Ltd, along with affiliate HWIC Asia Fund Class A. Following the completion of the transaction, Fairfax India and its affiliate are expected to join the promoter group alongside existing promoters Nirmal Jain and R. Venkataraman.
The company stated that Fairfax Group has been a long-term shareholder in IIFL Capital and currently owns approximately 30.5% stake in the business. Upon completion of the deal and receipt of necessary approvals, FIH Mauritius will also gain the right to nominate two directors to the company’s board.
IIFL Capital said the proposed capital infusion is expected to strengthen its balance sheet and support expansion across key businesses including capital markets, wealth management, asset management, institutional equities, investment banking, and related financial services.
The company added that Fairfax’s global investment network and financial strength could help enhance IIFL Capital’s institutional positioning, governance standards, international relationships, and long-term cost of capital.
The transaction will also trigger an open offer under applicable SEBI regulations. The company clarified that the deal remains subject to customary regulatory, shareholder, and other statutory approvals.
Commenting on the development, Fairfax India founder Prem Watsa said the group has maintained a long-standing partnership with IIFL Capital and expressed confidence in the company’s future growth prospects and leadership position in India’s financial services sector.
IIFL Capital promoter Nirmal Jain stated that Fairfax India has been a trusted long-term partner of the IIFL Group for over 15 years and highlighted the value created through the relationship over time.
R. Venkataraman, Co-Promoter and Managing Director of IIFL Capital, said the transaction comes at a significant phase for India’s financial markets and is expected to support the company’s next stage of growth.