IIFL Capital has officially acknowledged exploring strategic opportunities following widespread reports of TPG Capital's interest in acquiring a significant stake. In an exchange filing on Wednesday, the company stated that it explores various strategic opportunities from time to time, but clarified that as of now, there is no information or development that requires disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. According to reports from The Hindu Business Line, the clarification came in response to media reports suggesting TPG Capital is in advanced negotiations to acquire a 30-40% minority stake in the Mumbai-headquartered financial services firm.
TPG Capital is in advanced negotiations to acquire a significant minority stake of 30-40% in IIFL Capital Services, potentially emerging as the single largest shareholder in billionaire Nirmal Jain's flagship listed financial services firm. The US buyout group is currently conducting due diligence with the aim of triggering an open offer for an additional 26% stake. The eventual holding will depend on the stock tendered by minority shareholders in the open offer. IIFL Capital closed at ₹389 on the BSE, up 2.5% for a market value of ₹12,119.18 crore. According to reports from The Economic Times, the investment aligns with TPG's strategy of acquiring scaled assets in the wealth management space. TPG's interest coincides with Jain's efforts to transform his brokerage firm and re-enter wealth management to repeat the success of 360 One, which was earlier part of his group.
TPG's investment could be a combination of primary and secondary capital infusion, with final contours expected to crystallise in the coming weeks. At current prices, TPG's investment could range from ₹3,635.7 crore to ₹4,847.6 crore, excluding the open offer. If fully subscribed, the transaction size could reach approximately ₹8,000 crore. The IIFL stock has surged 26% since December on speculation of a potential investor entering to provide growth equity. As reported by CNBC TV18 in December, PE groups such as TPG and Bain Capital were evaluating the purchase of a stake in the company. For IIFL Capital, the partnership provides access to growth capital as founder Nirmal Jain seeks to replicate the success of 360 One.
The promoters, led by Jain and his wife Madhu, currently own 30.98% of the company, while Prem Watsa-backed Fairfax is the second largest shareholder with a 27.27% stake held via FIH Mauritius Investment. Abu Dhabi Investment Authority is also a backer of the company. TPG's entry would significantly reshape the ownership structure of the Mumbai-headquartered financial services firm. According to The Economic Times, an investment at the listed entity makes it easier for an eventual exit and automatically provides exposure to the whole portfolio. Jain has now stepped down from the board of 360 One as well, focusing on his current ventures.
IIFL Capital decided to pivot toward becoming a full-service wealth manager in 2024, changing its name from IIFL Securities in the previous fiscal year. The company has a national presence through more than 100 branches and 3,500 external wealth partners. During the first nine months of fiscal 2025, total income was ₹1,994 crore and PAT was ₹585 crore. Its primary business of broking and allied activities contributed 74% of total income, while distribution of financial products contributed 16% and investment banking 10%. The company holds a 0.67% market share of turnover volume in the cash and derivatives segments of the National Stock Exchange for the first half of FY25. The company had more than 457,000 active clients as of September 30, 2024, with the margin trading facility gross book at ₹1,427 crore on December 31, 2024.
