IIFL Finance has formally dismissed media reports claiming that billionaire Prem Watsa’s Fairfax group is planning to exit its investment in the non-banking financial company to fund a potential takeover of IDBI Bank.
Recent reports had suggested that private equity giant Blackstone was in talks with Fairfax to acquire its stake in IIFL Finance. Speculation indicated that Fairfax was looking to divest its holdings—which stood at approximately 13.69% as of July—to comply with regulatory guidelines and streamline its lending portfolio ahead of a massive bid for IDBI Bank, which could value the state-owned lender at roughly ₹53,000 crore ($5.5 billion).
Responding to the speculation, IIFL Finance clarified to the stock exchanges that no such undisclosed negotiations or events have taken place that would account for recent market movements.
