The Competition Commission of India (CCI) has approved Fairfax India's proposal to acquire an additional stake in IIFL Capital Services. The transaction involves a preferential equity issue and shares tendered by public shareholders under a mandatory open offer. The approval comes after the CCI reviewed the deal's compliance with competition laws.
Fairfax India, a US-based private equity firm, had previously acquired a 19.9% stake in IIFL Capital in 2021. This latest move aims to increase its ownership further, subject to regulatory approvals. The CCI's clearance indicates that the transaction does not pose a threat to market competition.
The deal is part of Fairfax India's strategy to expand its presence in the Indian financial services sector. IIFL Capital, a leading player in non-banking financial services, has been a key target for foreign investment in recent years. The approval reflects the CCI's ongoing role in balancing foreign investment with regulatory oversight.
The transaction is expected to be completed within the next few months, pending final approvals from other regulatory bodies. It underscores the continued interest of foreign investors in India's financial markets.
