Fairfax Group divests 4.27% stake in IIFL Finance, sells shares worth Rs 490 crore

IIFL Finance and its subsidiaries, IIFL Home Finance Limited and Samasta Microfinance, are focussed on retail lending digitally. (Representational image)

Canadian billionaire Prem Watsa-backed Fairfax Group has divested a 4.27 percent stake, amounting to shares worth Rs 490 crore, in IIFL Finance Ltd, CNBC TV 18 reported citing regulatory disclosures on December 10.

The shares were offloaded by Fairfax Group through its affiliate Hamblin Watsa Investment Counsel (HWIC) Asia Fund.

HWIC Asia Fund sold 57 lakh shares at a price of Rs 312.65 each on December 8 via a bulk deal, the news channel reported, adding that the remaining 1.04 crore shares were offloaded at a price of Rs 300.17 each on December 9.

Notably, Fairfax Group, along with the UK government’s development finance institution CDC Group plc, is a key investor in IIFL Finance, a retail-oriented non-banking financial company (NBFC). As of November 30, they held 22.3 percent stake and 7.7 percent stake, respectively.

With over 2,563 branches, IIFL Finance and its subsidiaries, IIFL Home Finance Limited and Samasta Microfinance, are focussed on retail lending digitally. The product portfolio comprises home loans, gold loans, business loans including loan against property and unsecured MSME financing, microfinance, developer and construction finance and capital market finance.