Fairfax India Holdings Corporation is set to increase its stake in IIFL Capital Services Ltd to 51% through an investment of ₹2,000 crore via preferential allotment of shares at ₹350 apiece.
The proposed transaction will trigger a mandatory public offer under takeover regulations.
Following the preferential allotment, Fairfax India’s wholly-owned subsidiary Fairfax Mauritius Investments Ltd will increase its stake in IIFL Capital from 27.18% to 38.47%, while affiliate HWIC Asia Fund Class A will continue to hold 3.33%.
Promoters to continue
IIFL Capital Services Ltd promoters, Nirmal Jain and R Venkataraman, holding 15.08% and 3.59% respectively, will continue as co-promoters of the company.
The company said Fairfax’s long-term investment philosophy, global network and financial strength are expected to strengthen IIFL Capital’s strategic positioning, institutional credibility and access to global relationships, while also supporting a lower cost of capital over time.
The induction of Fairfax nominees on the board is also expected to enhance governance standards, oversight mechanisms and risk management frameworks while preserving the entrepreneurial culture of the company.
Leadership comments
Fairfax India Holdings Corporation Founder Prem Watsa said: “IIFL Capital is now one of India’s leading financial services companies, and with this new capital infusion we believe the company is well positioned for the future as it expands its wealth and asset management services offerings, while maintaining its leading position in retail broking and financial services.”
IIFL Capital Services Promoter, Nirmal Jain said, “Fairfax India (and its affiliate) has been a trusted long-term partner of the IIFL Group for over 15 years, and together we have created significant value for all stakeholders. Over the years, this relationship has been built on deep mutual trust, shared values, and a long-term commitment to institution building.”
IIFL Capital Services Co-Promoter & Managing Director R Venkataraman said, “This transaction reflects Fairfax’s continued confidence in IIFL Capital’s leadership team, and its robust business model.”