Fairfax India Holdings Corporation, the Canada-based investment firm founded by Prem Watsa, announced on Thursday that it will invest ₹2,000 crore in IIFL Capital Services Limited through a preferential allotment of equity shares at ₹350 per share. The deal, disclosed at a board meeting held the same day, will raise Fairfax India’s stake in the Mumbai-based financial services firm to a minimum of 51 per cent, making it the majority shareholder.
The transaction will be executed through Fairfax’s wholly owned subsidiary, FIH Mauritius Investments Ltd, via a combination of the preferential allotment, an open offer, and arrangements with existing promoters. The proposed deal will trigger a mandatory open offer under SEBI regulations.
Fairfax India and its affiliate, HWIC Asia Fund Class A, will join the existing promoter group upon completion of the transaction. Founders Nirmal Jain and R. Venkataraman will continue as co-promoters. Subject to shareholder and regulatory approvals, FIH Mauritius will have the right to nominate two directors to the company’s board.
Fairfax is an existing investor in the company, currently holding approximately 30.5 per cent through FIH Mauritius and its affiliate. The increased capital is intended to strengthen IIFL Capital’s balance sheet and fund growth across its capital markets, wealth management, asset management, institutional equities, and investment banking businesses.
IIFL Capital’s shares closed at ₹350.45 on the NSE on Thursday, up 5.40 per cent from the previous close of ₹332.50, on traded volumes of approximately 33.78 lakh shares. The stock has gained over 33 per cent in the past month and 51.75 per cent over the past year. The company’s total market capitalisation stands at roughly ₹10,902 crore.
The transaction remains subject to regulatory and shareholder approvals. IIFL Capital Services was formerly IIFL Securities Limited.