IIFL Capital shares rise amid buzz of US PE firm TPG Capital picking up to 20% stake

IIFL Capital shares rise in trade.

IIFL Capital Services shares settled nearly 1 percent higher on Wednesday amid market buzz that US private equity firm TPG is in talks to acquire up to a 20 percent stake in the company.

The stock settled at Rs 394.55 apiece on the NSE, up 0.97 percent. During the session, it rose as much as 5.26 percent to an intraday high of Rs 411.30, after opening 2.39 percent higher.

The stock has gained around 5 percent over the last three sessions.

The buying interest was driven by reports that TPG is looking to enter India’s capital markets and wealth management space through an investment in IIFL Capital.

“Various modalities of a possible deal are being worked out,” said a person familiar with the matter.

According to a Moneycontrol report, TPG is currently carrying out due diligence on IIFL Capital.

It is understood that TPG is in talks to acquire some or all of the stake held by Fairfax, which owns about 27 percent of IIFL Capital through FIH Mauritius Investments. The discussions also include a possible infusion of fresh capital into the company.

The transaction, if concluded, could result in TPG acquiring a minimum stake of around 20 percent in IIFL Capital.

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