The wealth management subsidiary of IIFL Holdings Ltd on Tuesday said it will raise Rs745.71 crore from a clutch of leading institutional investors. The fund-raising will take IIFL Wealth Management Ltd’s valuation to Rs14,622 crore, up three-fold since 2015.
In a statement, IIFL said its board has approved raising fresh capital from HDFC Standard Life Insurance Co. Ltd, General Atlantic Singapore Fund Pte Ltd (GA) and Steadview Capital Mauritius Ltd, among others, for a 5.1% stake dilution.
According to the fund-raising plan, 44,89,500 equity shares of IIFL Wealth will be issued at Rs1,661, each, to investors. WF Asian Reconnaissance Fund Ltd, Rimco Mauritius Ltd and Amansa Holdings Pvt. Ltd will be issued 10,92,000 equity shares, each.
GA and Steadview will be issued 5,66,500 and 3,47,000 equity shares, respectively. Three lakh equity shares will be issued to HDFC Standard Life. The plan is subject to regulatory approvals.
This is the second fund raise by IIFL Wealth Management, which is also one of India’s largest wealth managers in terms of assets under management (AUM).
In October 2015, GA had invested Rs1,122.34 crore for a 21.61% stake in the firm.
The funds raised will be used for business expansion. “We will primarily be utilizing the money for growing the asset management business and non-banking finance company of IIFL Wealth,” Nirmal Jain, founder and chairman, IIFL Group, said over the phone.
On being asked if the firm will be exploring acquisition opportunities, Jain said that while the company is open to acquisitions, the funds will mostly be utilized for growing organically.
IIFL Holdings will own 51.11% of IIFL Wealth on a fully diluted basis after the closure of the transaction.
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This article was first published on livemint.com
