Fairfax India to invest $211-M in IIFL Capital, raise stake to 51%

Fairfax India is to invest INR 2,000 crore in Mumbai-based, publicly listed IIFL Capital Services to become the majority shareholder. The transaction increases the stake held by Fairfax India and its affiliate, HWIC Asia Fund Class A, to at least 51%. The deal is structured through a preferential allotment at INR 350 per share, an open offer, and arrangements with existing promoters Nirmal Jain and R Venkataraman.Founded in 1996, IIFL Capital provides services across capital markets, wealth management, asset management, institutional equities, and investment banking.The primary capital from the transaction will be used to strengthen the firm’s balance sheet and support growth across financial service business lines.