Global private equity major General Atlantic Singapore has acquired 21.6 per cent stake in IIFL Wealth Management (IIFLW) for a consideration of Rs 1,122 crore. The deal values IIFL Wealth at Rs 5,200 crore.
A stock exchange announcement by IIFL Holdings after its board meeting on Saturday said that the company has decided to issue 1.7 million equity shares worth Rs 100 crore and would issue 13.63 million warrants worth Rs 863 crore to General Atlantic Singapore Fund Pte.
It further added that another 2.71 million employee’s shares worth Rs 159.34 crore would be transferred to the private equity major and the said transaction would get completed over the period of next 18 months.
While this aggregates to a total investment of Rs 1,122 crore by General Atlantic in IIFL Wealth, it would result into a holding of 21.6 per cent in the company after the consummation of the deal. As a result of the stake sale, IIFL Holding’s stake in IIFL Wealth would come down from 76.79 per cent now to 53.86 per cent.
While the stake sale was approved by board of directors of IIFL Holdings and the management of IIFL Wealth on Saturday, the company said that the sale would enable the company to expand and grow. Currently IIFL Wealth claims to be managing assets worth close to $12 billion (over Rs 78,000 crore).
“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 Holdings is the holding company for the entire IIFL group and has interests across various financial services, including broking, investment banking, asset management and lending.
In another development, Canada-based Fairfax India Holdings Corporation plans to acquire 26 per cent stake in IIFL Holdings for an expected over Rs 1,500 crore through a voluntary open offer in December this year.