Capital Group Buys 1.5% Stake in IIFL Fin for Rs 374 Cr; Stock Rises Over 2%

New Delhi: Financial services company Capital Group has bought a 1.54 per cent stake in IIFL Finance from Fairfax India’s affiliate for Rs 374 crore through open market transactions, according to block deal data on the NSE.

Following the stake purchase, shares of IIFL Finance on Friday rose 2.43 per cent to trade at Rs 622.60 apiece on the National Stock Exchange (NSE).

US-based Capital Group, through its two affiliates, SmallCap World Fund Inc and American Funds Insurance Series Global Small Capitalization Fund, purchased a total of 63,39,355 shares, representing a 1.49 per cent stake in IIFL Finance.

The transactions were executed on Thursday at an average price of Rs 590 apiece, taking the deal size to Rs 374.02 crore, as per the data.

On the other hand, FIH Mauritius Investments, a wholly owned subsidiary of Fairfax India, sold an equal number of shares at the same price.

After the latest transaction, FIH Mauritius Investments’ shareholding in IIFL Finance declined to 13.69 per cent from 15.18 per cent.

Despite the stake sale, Fairfax India’s affiliate continues to be the largest public shareholder in the Mumbai-based non-banking financial company.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)