February 21, 2024

Some domestic institutional investors were buyers in the transaction, the CNBC-TV18 report stated.

Shares of IIFL Finance slumped over 7 percent in the opening trade on December 22 after a block deal worth Rs 1,358 crore took place in the counter.

Around 2.4 crore shares, representing a 6.5 percent stake in the company, changed hands on the exchanges at an average price of Rs 555 each. The floor price of the block deal was at a discount of around 7 percent to the stock’s Thursday closing price of Rs 595.15.

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At 9.34am, the shares of IIFL Finance were trading nearly 6 percent lower at Rs 560.10 on the NSE.

The block deal also triggered a spike in volumes in the counter as 3 crore shares changed hands on the exchanges so far, significantly higher than the one-month daily traded average of 6 lakh shares.

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Moneycontrol could not ascertain the parties involved in the transaction. However, CNBC-TV18 reported citing sources that private equity firm Fairfax was amongst the sellers in today’s block trade.

Fairfax sold a little over 5.2 percent equity in today’s block deal, while long-only funds along with some domestic institutional investors were buyers in the transaction, the report stated.

According to the company’s latest shareholding data, Fairfax owned a 20.89 percent stake, which will come down to around 15 percent post the block deal. The CNBC-TV18 report also stated that the PE firm is committed to hold rest of its outstanding stake in IIFL Finance.

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