IIFL Holdings rallies on open offer by Fairfax India

The stock rallied 17% to Rs 220 after FIH Mauritius Investments made an open offer at a price of Rs 195 per share.

 

Shares of IIFL Holdings have rallied 17% to Rs 220 on the BSE after FIH Mauritius Investments, a wholly-owned subsidiary of Fairfax India Holdings Corporation made an open offer at a price of Rs 195 per share.

The stock hit a high of Rs 226 and has seen an over two-fold jump in trading volumes. Till 0924 hours, a combined 1.28 million shares changed hands on the counter as against an average sub-200,000 shares that were traded daily in the past two weeks on the BSE and NSE.

“FIH Mauritius Investments (Acquirer) with HWIC Asia Fund (Class A Shares), I Investments Ltd and FIH Private Investments Ltd as the Persons Acting in Concert with the Acquirer has issued a public announcement of an open offer to acquire up to approximately 83.13 million equity shares of IIFL Holdings, formerly India Infoline, at a price of Rs 195 per share,” ICICI Securities, the manager to the offer, said in a BSE filing.

Assuming full acceptances in the offer, FIH will, together with certain of its affiliates, acquire 26% of the outstanding shares of IIFL for an aggregate consideration of Rs 1,621 crore. The offer is expected to close later this year, subject to regulatory approvals in India.