Prem Watsa's Fairfax India raises stake in brokerage IIFL for Rs. 1621 cr - Fairfax India Holdings Corp FIHu.TO owned by Canadian investor Prem Watsa, is planning to increase its share in Indian financial services business IIFL Holdings Ltd IIFL.NS to up to 26 per cent for $225 million by way of a share tender offer.
Hyderabad-born Watsa set up fund Fairfax India last year to increase India investments and said its Mauritius unit would purchase about 83 million shares of IIFL at 195 rupees each, a premium of 3.6 percent over the Indian firm's close price on Monday.
The fund said that Fairfax India's parent Fairfax Financial Holdings Ltd FFH.TO already holds about 8.97 per cent of IIFL and has an economic interest of another 5.24 per cent through derivative instruments.
It believes that the offer will close later this year.
Fairfax India's chairman Prem Watsa said, "IIFL, under the independent leadership of its executive chairman, Nirmal Jain, has an impressive management team with a strong, long-term history of profitable growth, which fits within our strategy for investing in well-managed companies with high integrity and long-term track records in India."
IIFL is a diversified financial services holding company, with commercial interests in non-banking finance, housing finance, retail broking, wealth management, investment banking, institutional equities and insurance distribution.
After the announcement, shares of IIFL soared more than 10% to Rs 208 on the BSE on Tuesday.