Fairfax Group Divests 5.7% Stake in IIFL Finance for Rs 1,198 Crore

In a significant transaction, Canadian billionaire Prem Watsa's Fairfax Group has divested a 5.7% stake in IIFL Finance, a leading player in India's financial services sector. The divestment, valued at approximately Rs 1,198 crore, was executed through an open market transaction.

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Details of the Transaction

Fairfax Group, acting through its affiliate FIH Mauritius Investments Ltd, sold 2,16,02,000 shares of IIFL Finance Ltd, representing a 5.7% stake in the company. The shares were disposed of at an average price of Rs 554.64 apiece, resulting in a transaction value of Rs 1,198.13 crore.

Following this transaction, FIH Mauritius Investments' shareholding in IIFL Finance has declined from 20.90% to 15.2%. Meanwhile, Nomura India Investment Fund Mother Fund acquired over 26.20 lakh shares of IIFL Finance at an average price of Rs 551.01 per share, amounting to a deal size of Rs 144.39 crore.

IIFL Finance: A Leading Financial Services Provider

IIFL Finance, formerly known as IIFL Holdings, is a prominent player in India's financial services industry. Along with its subsidiaries, IIFL Home Finance and Samasta Microfinance, the company offers a diverse range of loans and mortgages, catering to both retail and corporate clients.

IIFL Finance's services include home loans, gold loans, business loans (including loans against property and medium & small enterprise financing), microfinance, developer & construction finance, and capital market finance.

Fairfax Group's Previous Transactions

This divestment marks the latest in a series of transactions involving Fairfax Group and IIFL Finance. In April 2022, FIH Mauritius Investments Ltd sold a 1.4% stake in 360 One Wam (formerly IIFL Wealth Management) for Rs 210 crore. Additionally, in 2021, Fairfax Group divested a 3.2% stake in IIFL Finance for Rs 365 crore.

Sansera Engineering: Separate Bulk Deal

In a separate bulk deal on the BSE, CVCIGP II Employee Ebene Ltd sold shares of Sansera Engineering for Rs 116 crore through an open market transaction. CVCIGP II Employee Ebene disposed of 12 lakh shares of Sansera Engineering at an average price of Rs 966.10, resulting in a deal size of Rs 115.93 crore.

HDFC Standard Life Insurance acquired 8.25 lakh shares of Sansera Engineering, while details of the other buyers remain undisclosed. On Friday, shares of Sansera Engineering witnessed a gain of 0.91%, closing at Rs 992.65 apiece on the BSE.