Private sector IDFC Bank Ltd on Tuesday bought approximately 5% stake in financial services company IIFL Holdings Ltd for about Rs502 crore, stock exchange data showed. IDFC Bank bought approximately 1.58 crore shares at Rs317 each from Copthall Mauritius Investment Ltd, a JP Morgan investment vehicle.
India’s youngest private-sector bank, which started banking operations in 2015, has already bought into Grama Vidiyal Microfinance, Suryoday Small Finance Bank Ltd and ASA International India Microfinance Pvt. Ltd.
As of December quarter, Copthall Mauritius Investment held 5.13% in IIFL Holdings. The promoters, led by founder and chairman Nirmal Jain, own about 29.08%, while Hamblin Watsa Investment Counsel (HWIC) Asia Fund, an affiliate of Prem Watsa-led Fairfax Financial Holdings, held about 8.8%. Fairfax had first invested in IIFL in 2011.
Set up in 2004, IIFL Holdings is a holding company for broking, non-banking finance, housing finance, wealth management, institutional equities, investment banking and insurance distribution, among other financial services.
In July 2016, the UK government-owned development finance institution CDC Group Plc invested Rs1,000 crore ($150 million) in the non-banking financial arm of IIFL Holdings, formerly known as India Infoline.
In November last year, IIFL acquired Samasta Microfinance Ltd, a Bengaluru-based non-banking financial company to enter microfinance and expand its offerings. As on 30 September 2016, it had total assets under management of Rs20,474 crore.