Fairfax India to Invest ₹2,000 Crore in IIFL Capital, Boosting Stake to 51%
IIFL Capital jumps after Fairfax India announces Rs 2,000 crore investment
Business Standard
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IIFL Capital Services' shares rose by 4.50% after Fairfax India Holdings Corporation announced a ₹2,000 crore investment. This investment will increase Fairfax's stake to at least 51%, enhancing IIFL's financial services and expansion plans, pending regulatory approvals.
- 01Fairfax India will invest ₹2,000 crore in IIFL Capital through preferential allotment.
- 02The investment will raise Fairfax's stake to a minimum of 51% in IIFL Capital.
- 03The preferential allotment price is set at ₹350 per share.
- 04IIFL Capital reported a 10% decline in net profit despite a 20% increase in revenue.
- 05The transaction is subject to shareholder and regulatory approvals.
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IIFL Capital Services, a financial services company formerly known as IIFL Securities, saw its shares rise by 4.50% to ₹346.35 following the announcement of a ₹2,000 crore investment from Fairfax India Holdings Corporation. This investment will be executed through a preferential allotment, priced at ₹350 per share, and will increase Fairfax's stake to a minimum of 51%, allowing it to join the promoter group alongside existing promoters Nirmal Jain and R. Venkataraman. The investment is expected to bolster IIFL's balance sheet and support its expansion across various sectors, including capital markets and investment banking. However, the transaction is contingent on shareholder and regulatory approvals. IIFL Capital reported a 10% decline in net profit to ₹115.1 crore despite a 20% rise in total revenue to ₹644.3 crore for the fourth quarter of FY26 compared to FY25.
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The investment is expected to enhance IIFL Capital's capabilities and market position, potentially leading to improved services for clients and investors.
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