IIFL Holdings shares zoom over 10% on Fairfax open offer

Shares of IIFL Holdings surged over 10% after Canadian investor Prem Watsa's Fairfax India Holdings made an open offer to raise its stake in the financial firm to 26%. 

The stock soared 10.13% to settle at Rs 207.05 on the BSE. During intra-day, it gained 20% to Rs 225.60 -- its 52-week high. 

At the NSE, shares of IIFL Holdings jumped 9.98% to end at Rs 207.10. 

Fairfax India Holdings today made an open offer to raise its stake in IIFL Holdings to 26% 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% in IIFL, and has an economic interest of another 5.24% 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.