Fairfax India is set to increase its stake in IIFL Capital Services from 30.5% to 51% through an investment of Rs. 20 billion ($211 million). The transaction will be executed via Fairfax India’s subsidiary FIH Mauritius Investments through a preferential allotment priced at Rs. 350 per share, a 5.3% premium to IIFL Capital’s closing price on the day prior to the announcement.
Fairfax India is an investment holding company backed by Canada’s Fairfax Financial Holdings.
The capital will support IIFL Capital’s operations across capital markets, wealth and asset management, institutional equities, and investment banking. Subject to shareholder and regulatory approvals, FIH Mauritius will have the right to nominate two directors to IIFL Capital’s board.
The transaction will trigger a mandatory open offer under Indian market regulations on minimum public shareholding.
The investment comes as Indian brokerages and wealth managers face rising technology costs and pressure to scale, against a backdrop of uneven deal activity and global market uncertainty.
