New Delhi, The Competition Commission of India (CCI) on Tuesday cleared Fairfax India Holdings Corporation’s proposal to acquire an additional stake in IIFL Capital Services.
Fairfax India Holdings Corporation, through its affiliate FIH Mauritius Investments Ltd (FIHM), is acquiring the stake in IIFL Capital Services.
Under the proposed combination, FIHM will subscribe to fresh equity shares of IIFL Capital Services through a preferential issue on a private placement basis and acquire shares tendered by public shareholders under a mandatory open offer, CCI said.
“The acquirer (FIHM) may also undertake a secondary purchase from the promoters of the target (IIFL Capital Services Ltd), if FIHM’s and HWIC’s aggregate shareholding in IIFL Capital remains less than the target shareholding post completion of the primary subscription and the open offer acquisition,” it added.
FIHM is a Mauritius-based private company engaged in investment holding, with a focus on long-term capital appreciation and preservation through investments in equity and debt securities in India.
It holds a global business license and has no other business activities.
“Commission approves acquisition of certain additional equity share capital of IIFL Capital Services Ltd by FIH Mauritius Investments Ltd,” CCI said in a post on X.
FIHM is wholly owned by Fairfax India Holdings Corporation, a company listed in Toronto, whose ultimate parent is Fairfax Financial Holdings Ltd, a Canadian holding company engaged in property and casualty insurance, reinsurance and investment management across several countries, including India.
IIFL Capital Services is a Sebi-registered financial services company.
It provides integrated wealth management, investment banking, broking, institutional equities and research services to high-net-worth and ultra-high-net-worth individuals and family offices.
Its primary activities include stockbroking in equity and commodities, investment banking and distribution of financial products in India.
Deals beyond a certain threshold require approval from CCI.
The regulator keeps a tab on unfair business practices and also promotes fair competition in the marketplace.
