Bain Capital Acquires 24.9% Stake In IIFL Wealth For ₹3679.95 Cr; Share Price Jumped 6%
Indian wealth management firm IIFL Wealth Management on Thursday reported that they have signed a deal with Massachusetts-based American private investment firm Bain Capital which will buy a 24.9% stake in their company for nearly ₹3,679.95 Cr.
The company will buy the stake from IIFL Wealth’s existing private equity investors, General Atlantic, an American growth equity firm, and FIH Mauritius Investments, owned by Fairfax Financial Holdings Limited, a financial holding company.
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Per Share Price Fixed At ₹1,661
According to Economic Times, taking regulatory and other necessary approvals, Bain Capital will acquire 22.15 million shares from General Atlantic Singapore Fund and FIH Mauritius Investments at ₹1,661 per share.
General Atlantic had bought a 21.6% stake in the company in October 2015 by paying ₹1,122 cr.
While Indian-born Prem Watsa Fairfax Financial’s owned FIH Mauritius Investments were the first investors in the company. They bought a 9% stake in the company in 2011.
What does the company do?
Founded in 2008 by Karan Bhagat and co-founder Yatin Shah, the Mumbai-based wealth management firm has an AUM of over USD 44 billion and 850 employees across 4 major global financial centers and 23 locations in the country.
According to their official website, IIFL Wealth provides HNI and UHNI clients investment management services with the aim to generate steady returns from a diversified portfolio with the lowest possible volatility, along with allied additional services such as trust and estate planning, credit solutions, and corporate advisory.
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8% Zoom In Shares After Bain Capital’s Announcement
According to bseindia.com, IIFL Wealth’s share price zoomed about 8% during early trading hours after Bain Capital announced about acquiring a 1/4 stake in the company.
At the time of news writing each share price is ₹1,674.45, which is 5.75% up than the opening price.
