US investment giant buys shares offloaded by Fairfax India affiliate; IIFL stock climbs over 2% on the news
Capital Group, the US-based asset management firm, has acquired a 1.54 per cent stake in IIFL Finance, buying the shares from an affiliate of Fairfax India in a large block transaction on the National Stock Exchange.
The deal details
The purchase was carried out through two Capital Group affiliates — SmallCap World Fund Inc and American Funds Insurance Series Global Small Capitalization Fund, which together picked up over 63 lakh shares, amounting to a 1.49 per cent stake in the company. The trade was executed on Thursday at an average price of ₹ 590 per share, valuing the deal at just over ₹ 374 crore.
Seller and stock reaction
The shares were sold by FIH Mauritius Investments, a wholly owned arm of Fairfax India. Following the sale, FIH Mauritius’s holding in IIFL Finance dropped to 13.69 per cent, down from 15.18 per cent earlier. Even after paring its stake, the Fairfax India affiliate remains the largest public shareholder in the Mumbai-headquartered non-banking financial company.
News of the transaction gave IIFL Finance’s stock a boost, with shares climbing 2.43 per cent to ₹ 622.60 on the NSE on Friday.
What it signals
The transaction highlights continued global institutional interest in Indian NBFCs, even as existing large investors like Fairfax India trim exposure. Capital Group’s entry adds a new marquee name to IIFL Finance’s shareholder base, while Fairfax India’s affiliate retains its position as the company’s top public investor despite the partial exit.
