FIH Mauritius Announces Open Offer For 26% Stake In IIFL Capital At ₹350 Per Share

A day after Fairfax India announced a ₹2,000 crore preferential investment in IIFL Capital Services, its wholly-owned subsidiary FIH Mauritius Investments Ltd. has launched an open offer to pick up an additional 26% stake from public shareholders.

The offer price has been set at ₹350 per share, and if fully accepted, the open offer alone will involve a payout of up to ₹3,505 crore. Put together with the preferential investment, the Fairfax group's total outlay in IIFL Capital could reach ₹5,505 crore.

How The Deal Is Structured

The open offer is a regulatory requirement that gets triggered automatically under SEBI rules whenever a major change in shareholding takes place. It follows an investment agreement signed on 7 May, under which FIH Mauritius will pick up 5.71 crore shares of IIFL Capital through a preferential issue worth ₹2,000 crore. On top of that, the company may also buy shares directly from promoters Nirmal Jain and R. Venkataraman.

The end goal is straightforward: taking the combined holding of FIH Mauritius and its affiliate HWIC Asia Fund to a minimum of 51% in IIFL Capital. Before the transaction, the two together held about 24.67% in the company, with FIH Mauritius accounting for 21.98% and HWIC Asia Fund holding 2.69%. If the open offer is fully subscribed, FIH Mauritius's stake on its own could climb to as high as 62.81%.

The open offer covers up to 10 crore equity shares, representing 26% of IIFL Capital's expanded share capital. The acquirer has clarified that it has no plans to delist the company. The detailed public statement covering all the specifics of the offer is set to be released on or before 14 May 2026.

What This Means For IIFL Capital

Once everything is wrapped up, Fairfax India, along with HWIC Asia Fund, will be inducted into IIFL Capital's promoter group, sitting alongside Nirmal Jain and R. Venkataraman. Pending the green light from shareholders and regulators, FIH Mauritius will also get the right to put forward two names for the company's board.

The ₹2,000 crore coming in through the preferential issue will give IIFL Capital's balance sheet a meaningful boost. The money is expected to fuel growth across the company's various business lines, from capital markets and wealth management to asset management, institutional equities, and investment banking.

Fairfax brings more than just capital to the table. Its global reach, patient approach to investing, and deep pockets should help IIFL Capital pull in stronger institutional backing and gradually bring down what it costs the company to raise money.

Also Read - Gold Rises On MCX As Middle East Tensions Flare; US Jobs Data In Focus

A Long-Standing Partnership

Fairfax is no newcomer here. The group has been backing IIFL Capital for more than 15 years now. What's happening with this transaction is really an evolution of that equation, where a long-term investor is now stepping up to take on the role of majority promoter.

Sources:

NDTV Profit

Press Trust of India