Fairfax India to Raise Stake in IIFL Capital with Rs 2,000 Crore Infusion
Canada-based Fairfax India Holdings Corporation has announced a major investment of Rs 2,000 crore in IIFL Capital Services through its wholly owned subsidiary, FIH Mauritius Investments. The investment will be executed through a mix of preferential allotment of equity shares and an open offer, increasing Fairfax India’s stake in the company from around 30.5 per cent to a minimum of 51 per cent. Upon completion, Fairfax India and its affiliate HWIC Asia Fund Class A will join the existing promoter group led by Nirmal Jain and R Venkataraman. The proposed transaction remains subject to regulatory and shareholder approvals, including compliance with SEBI open offer norms.
According to the company, the capital infusion at Rs 350 per share will significantly strengthen IIFL Capital’s balance sheet and support expansion across capital markets, wealth management, asset management, institutional equities, investment banking, and related financial services businesses. As part of the agreement, FIH Mauritius will also gain the right to nominate two directors to the company’s board, subject to approvals. IIFL Capital stated that the addition of Fairfax representatives is expected to further enhance governance standards, oversight, risk management practices, and institutional processes while maintaining the company’s entrepreneurial culture.
Commenting on the development, Prem Watsa, founder of Fairfax India, said the company has shared a successful long-term partnership with IIFL Capital and its founders for over 15 years. He added that the latest investment reflects confidence in IIFL Capital’s leadership and future growth potential, especially as India’s financial markets continue to expand. Echoing the sentiment, Nirmal Jain and R Venkataraman described the transaction as a strategic move that positions IIFL Capital for its next phase of growth amid a rapidly evolving Indian financial landscape. Following the announcement, shares of IIFL Capital Services rose 4.40 per cent to Rs 346.05 on the BSE.
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