Fairaxix plans to sell IIFL Finance stake for ₹3,800 crore to fund IDBI Bank takeover
Prem Watsa-backed Fairfax Financial Holdings intends to divest its roughly 13.7% share in IIFL Finance, valued at approximately ₹3,800 crore, raising capital for its acquisition of IDBI Bank.
Fairfax Financial Holdings is preparing to exit IIFL Finance and deploy the proceeds toward acquiring IDBI Bank. Multiple sources indicate Fairfax has notified Indian authorities of its plan to merge Central State Bank with IDBI once the IDBI bid succeeds. This transaction would become the largest cross-border acquisition in Indian banking history. Fairfax currently holds about 13.7% of IIFL Finance, down from 15.18% at the end of June after a 1.49% sale to Capital Group entities in July. At its current market capitalization of roughly ₹27,700 crore, Fairfax's remaining holding is worth approximately ₹3,800 crore or nearly $400 million before any premium or discount on the sale. The Canadian investor is currently discussing the stake with at least four private-equity buyers. While IIFL Finance and the target company declined to comment, market watchers expect this exit will streamline Fairfax's lending operations by removing overlaps between its existing portfolio and IDBI Bank.
