Fairfax Group Sells 3.2% Stake in IIFL Finance

Fairfax Group, owned by the Canadian billionaire Prem Watsa, has sold 3.2% stake in IIFL Finance. IIFL Finance is the arm of the IIFL group which looks after lending and  other fund based activities of the group. The sale was made at a total value of Rs.365 crore via open market transactions.

According to the bulk deal filings made with the stock exchanges, Hamblin Watsa Investment Counsel (HWIC) Asia Fund sold a total of 121.65 lakh shares of IIFL Finance at a price of Rs.300 per share totaling to Rs.365 crore.

Out of this block sold, the Small Cap World Fund picked up 100 lakhs shares at a price of Rs.300.04 aggregating to Rs.300 crore.

Even after this sale, the Prem Watsa owned Fairfax group remains a significant holder in IIFL Finance. Prior to this deal, HWIC Asia Fund held 7.48% in IIFL Finance while Fairfax subsidiary, FIH Mauritius Investments holds 22.32%. The stake would of HWIC would have now reduced from 7.48% to 4.28%.

Small Cap World Fund already held 1.61% in IIFL Finance. With the latest purchase of 3.2% stake in IIFL Finance, the total stake of Small Cap World Fund would have gone up to 4.24% in IIFL Finance.

It may be recollected that IIFL Finance had just last year restructured its overall business into 3 distinct segments. IIFL Finance handles all the fund based activities of the IIFL Group. IIFL Private Wealth Management handles the lucrative wealth management, advisory and the asset management business of the IIFL Group. The broking, advisory and investing banking activities are carried on by IIFL Securities.

Currently, IIFL Finance, IIFL Securities and IIFL Private Management Wealth are all listed entities of the IIFL Group. IIFL Group conducts its low cost brokerage business through its unit 5Paisa Capital Limited, which is also a listed entity on the stock exchanges. IIFL Finance also has two specialized subsidiaries viz. IIFL Home Finance and Samasta Microfinance.

IIFL Finance covers the entire gamut of lending activities and their portfolio of products includes home loans, gold loans, business loans, loan against property, MSME financing, developer finance, construction finance as well as funding of capital market activity including margin funding.