- Fairfax Financial is in talks to acquire an additional stake in IIFL Capital Services
- The proposed deal involves a preferential allotment of equity shares worth about Rs 1,000 crore
- Fairfax aims to become co-promoter and majority shareholder in the Mumbai-based firm
Fairfax Financial Holdings Ltd., a Canadian diversified financial holding company, is in discussions to acquire an additional stake in IIFL Capital Services Ltd. through a preferential allotment of equity shares, sources familiar with the matter told NDTV Profit on Tuesday. The proposed transaction could position Fairfax as a co‑promoter and majority shareholder in the Mumbai-based wealth management company.
According to the sources, Fairfax is looking to purchase close to a 10% stake via the preferential issue, which could cost around Rs 1,000 crore. Such a transaction would trigger an open offer under the applicable takeover regulations.
As of March, promoters own around 30.9% stake in the company and Fairfax via FIH Mauritius Investments holds 27.2%. The total market capitalisation of IIFL Capital is Rs 10,200 crore.
The deal is said to be in its final stages and could be concluded within the next few weeks, subject to regulatory and shareholder approvals. The funds raised through the proposed allotment are expected to be used as growth capital for IIFL Capital's wealth management and asset management businesses.
Sources said the Canadian firm's additional investment would further deepen its involvement in the company's operations and long‑term strategy.
Neither IIFL Capital nor Fairfax offered any comment.
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