ICICI Securities Limited (Manager to the Offer) has submitted to the Exchange a copy of Public Announcement for the attention of the Public Shareholders of IIFL Capital Services Limited under Regulations 3(1), 3(2) and 4 read with Regulations 13(1), 13(2), 13(2A), 14 and 15(1) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and subsequent amendments thereto.
IIFLCAPS · price
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FIH Mauritius Investments Ltd, along with HWIC Asia Fund (PAC), has announced a mandatory open offer to acquire up to 100,144,112 equity shares (26% of expanded voting capital) of IIFL Capital Services Limited at INR 350 per share. The total offer value is approximately INR 3,505 crore. This open offer has been triggered because the Acquirer is entering into an Investment Agreement involving a preferential issue of 57.14 million shares at INR 350 each and a secondary purchase from promoter sellers. The Acquirer will become the new promoter of the company, crossing the 25% voting rights threshold that was set under a 2015 undertaking. The Acquirer currently holds 21.98% and after the transactions, aims to reach up to 62.81% ownership (including full open offer acceptance). The offer is all-cash and not conditional on minimum acceptance.
This is a significant control transaction where Fairfax Group is increasing its stake from ~22% to potentially ~63% in IIFL Capital Services. Existing public shareholders have an opportunity to exit at INR 350 per share, which should provide a floor price support. The stock may see volatility around the offer price.