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Fairfax India to Take Control of IIFL Capital With Rs 2,000 Crore Deal

The planned investment gives IIFL growth capital for expansion.

Overview

  • Fairfax India, which announced the plan Thursday, will lift its stake in IIFL Capital from about 30.5% to at least 51% through a preferential allotment, an open offer, and share purchases from promoters.
  • It will subscribe to new shares at Rs 350 each for roughly 10% of equity and launch an open offer for up to 26% at the same price, which could take total spending to about Rs 3,930 crore depending on tenders.
  • The transactions need shareholder approval and clearances under SEBI takeover rules, with the company saying closings are expected in stages starting in Q4 2026.
  • Subject to approvals, Fairfax’s FIH Mauritius unit will gain the right to nominate two directors to IIFL Capital’s board.
  • IIFL says the funds will strengthen its balance sheet and help grow capital markets, wealth and asset management, institutional equities, and investment banking businesses.