Mumbai: Shares of IIFL Holdings surged over 10 percent Tuesday after Canadian investor Prem Watsa's Fairfax India Holdings made an open offer to raise its stake in the financial firm to 26 percent.
The stock soared 10.13 percent to settle at Rs 207.05 on the BSE. During intra-day, it gained 20 percent to Rs 225.60 -- its 52-week high.
At the NSE, shares of IIFL Holdings jumped 9.98 percent to end at Rs 207.10.
Fairfax India Holdings today made an open offer to raise its stake in IIFL Holdings to 26 percent for a total consideration of Rs 1,621 crore, valuing the company at around Rs 6,400 crore.
It proposes to acquire 8.3 crore equity shares at a price of Rs 195 each, Fairfax India Holdings Corporation said in a statement.
Fairfax India's parent Fairfax Financial Holdings Ltd owns about 8.97 percent in IIFL, and has an economic interest of another 5.24 percent through derivative instruments, it added.
The open offer is expected to close later this year, subject to receipt of regulatory approvals in India, it added.
IIFL operates businesses in non-banking finance, housing finance, wealth management, retail broking, institutional equities, investment banking and insurance distribution.
