Fairfax India Holdings Corporation has announced a significant investment in IIFL Capital Services Limited, committing ₹2,000 crore to acquire a majority stake in the Mumbai-based financial services firm. According to the company's exchange filing dated May 7, 2026, the Canada-based investment firm founded by Prem Watsa will invest through a preferential allotment of equity shares at ₹350 per share, raising Fairfax India's stake to a minimum of 51 per cent and making it the majority shareholder. The transaction was announced after the company's board meeting on May 7, 2026, with the deal being executed through Fairfax's wholly owned subsidiary, FIH Mauritius Investments Ltd, via a combination of preferential allotment, open offer, and arrangements with existing promoters.
The proposed transaction will trigger a mandatory open offer under SEBI regulations, with Fairfax India and its affiliate, HWIC Asia Fund Class A, joining the existing promoter group alongside founders Nirmal Jain and R. Venkataraman. The investment comes at a price of ₹350 per share and is subject to shareholder and regulatory approvals, including open offer requirements under SEBI norms. Fairfax currently holds approximately 30.5 per cent through FIH Mauritius and its affiliate, and subject to approvals, FIH Mauritius will have the right to nominate two directors to the company's board. The increased capital is intended to strengthen IIFL Capital's balance sheet and fund growth across its capital markets, wealth management, asset management, institutional equities, and investment banking businesses.
IIFL Capital shares rose by 4 per cent to ₹345 in the opening session on the BSE on Thursday following the announcement. The Fairfax Group has been a longstanding shareholder of the company, with Fairfax currently holding about 30.5 per cent in IIFL Capital. The proposed transaction remains subject to customary regulatory and shareholder approvals, including applicable open offer requirements under SEBI regulations. The increased stake will make Fairfax India the majority shareholder, with the company's board meeting on May 7, 2026, formalizing the decision.
IIFL Capital expects the fresh funds to help expand operations across capital markets, wealth management, institutional equities, investment banking and related financial services businesses. As stated in the company's exchange filing, the strengthened capital base will improve its ability to capture opportunities emerging in India's fast-growing financial sector. The company also expects Fairfax's international network and financial strength to help improve institutional credibility, widen global relationships and lower the cost of capital over time. The induction of Fairfax representatives onto the board is also expected to further strengthen governance standards, oversight, risk management frameworks, and institutional processes, while preserving the entrepreneurial and execution-focused culture of the company.
