IIFL Capital shares jump 8% after Fairfax announces capital infusion plan

Shares of IIFL Capital Services were in strong demand on the bourses on Thursday, jumping as much as 8 per cent after Fairfax India Holdings Corporation announced a capital infusion plan in the company.Following the developments, the stock climbed as much as 7.96 per cent to ₹359 during intra-day trade on May 7, 2026.

 

Although the stock pared some of its gains, it continued to trade in the green. At 11:50 AM, IIFL Capital Services shares were quoting at ₹345.95 apiece, up 4.05 per cent from the previous close of ₹332.50 on the NSE. At the same time, the NSE Nifty50 was at 24,305, down 23 points or 0.10 per cent.

 

 

So far in Thursday’s session, a combined total of nearly 2.2 million equity shares of IIFL Capital Services, valued at about ₹76 crore, had changed hands on the NSE and BSE. The company’s market capitalisation stood at ₹10,820.80 crore on the NSE.

Fairfax to take controlling stake

Fairfax India Holdings Corporation, through its wholly owned subsidiary FIH Mauritius Investments Ltd, will increase its shareholding in IIFL Capital Services to a minimum of 51 per cent through a combination of preferential allotment, open offer, and arrangements with existing promoters, according to the exchange filing submitted by the company. 

 

Upon completion of the transaction, Fairfax India (and its affiliate HWIC Asia Fund Class A), the company said, will join the existing promoter group alongside Nirmal Jain and R. Venkataraman.  

The Fairfax Group has been a longstanding shareholder in the company. Fairfax India, through FIH Mauritius and its affiliate, currently holds about 30.5 per cent in IIFL Capital. Subject to shareholder and regulatory approvals, FIH Mauritius will also have the right to nominate two directors to the board.

 

The proposed transaction remains subject to customary regulatory and shareholder approvals, including applicable open offer requirements under Sebi regulations.

₹2,000 crore capital infusion

The proposed capital infusion of ₹2,000 crore at ₹350 per share is expected to significantly strengthen the company’s balance sheet and support its next phase of growth across capital markets, wealth management, asset management, institutional equities, investment banking, and related financial services businesses.

 

Earlier in the day, the company had announced that its board had approved the creation, offer, issue, and allotment of 5,71,42,857 fully paid-up equity shares of face value ₹2 each at ₹350 per share to FIH Mauritius Investments Ltd on a preferential basis, aggregating to approximately ₹2,000 crore.

 

The company further said that upon completion of the underlying transaction as well as the open offer, the investor will acquire and exercise control over the company and be classified as a ‘promoter’ along with the existing promoter and promoter group.