General Atlantic to buy 21.6% stake in IIFL Wealth for Rs 1,122 cr

IIFL Holdings' stake in IIFLW will come down from 76.79% to 53.86% once deal is done

Private equity firm General Atlantic Singapore Fund has agreed to pick up to 21.61 per cent stake in IIFL Wealth Management (IIFLW), a subsidiary of IIFL Holdings, for an investment of Rs 1,122 crore.

The private equity firm will invest Rs 863 crore to buy 13.6 million warrants to be converted within 18 months. It will buy another 2.7 million shares from the employees of IIFLW for Rs 160 crore.

IIFL Holdings’ stake in IIFLW will come down from current 76.79 per cent to 53.86 per cent once the transaction is consummated.  The sale of equity in IIFLW was approved by the board of IIFL Holdings at a meeting held on Saturday.

“The proposed transaction would enable IIFLW with additional capital for its business operations and general corporate purposes as well as for growth and expansion of the business,” said IIFL Holdings in BSE filing.

IIFL Wealth Management is the country’s leading wealth manager with assets under management worth nearly Rs 80,000 crore. IIFL Holdings is the holding company for the entire IIFL group, which has interests in wide range of financial services activity, including broking, investment banking and lending.

Canada’s Fairfax group is planning to acquire up to 26 per cent stake in IIFL Holdings through a voluntary open offer, the tendering process for which will remain open between October 29 and November 13.