Mumbai: IIFL group Chairman Nirmal Jain has said the completion of the open offer from Prem Watsa-owned Fairfax Holdings, for which the Canadian NRI investor has got the FIPB approval today, will not lead to any change in management of the financial services group.
"It is an open offer to the public shareholders and neither are the promoters diluting their holdings nor is the company issuing fresh equities. Therefore, there is no question me stepping aside or a new management coming in," Jain told PTI this evening.
Earlier in the day, the Foreign Investment Promotion Board (FIPB) cleared a proposal from Watsa's company to increase the stake in IIFL by 26 per cent through an open offer involving around Rs 1,621 crore.
The deal will see the foreign equity increase from 50.16 per cent to 80 per cent.
Jain said Watsa already owns 14 per cent in the group and he is seeking to increase it by up to 26 per cent through the open offer, worth around Rs 1,600 crore.
The IIFL group promoter Jain and R Venkataraman, who is the co-promoter and managing director, together own around 30 per cent in the company (23 per cent is with Jain and 7 per cent with other), while foreign investors hold 50.16 per cent.
The rest of the equities are with the public and other institutions.
According to an exchange filing last month, the Fairfax open offer for 26 per cent post-offer equity share capital of IIFL was to commence on October 29, and close on November 13.
The deal was being managed by ICICI Securities.
The open offer to acquire 83,128,852 shares was carried out by Fairfax India Holdings Corporation through its wholly-owned arm FIH Mauritius Investments, at a price of Rs 195 per share, aggregating to around Rs 1,621 crore.
Late last month, General Atlantic had acquired 21.61 per cent in IIFL group company IIFL Wealth Management by investing Rs 1122.34 crore, through group arm General Atlantic Singapore Fund, IIFL had said on October 25.