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IIFL Wealth Management buys NBFC Chephis Capital

15 February, 2016

IIFL Holdings Ltd’s (formerly India Infoline) wealth management unit IIFL Wealth Management Ltd has acquired the non-banking finance company Chephis Capital Markets Ltd, according to a stock market disclosure.

Financial details of the transaction, however, have not been disclosed.

The acquisition of Chephis Capital, a non-deposit taking non-systematically important NBFC, has been approved by the board of the directors, pursuant to the prior approval of RBI and other regulatory compliances, IIFL Holdings said in the statement.

Following the acquisition, Chephis Capital has become a wholly owned subsidiary of IIFL Wealth Management, it added.

Also, the board of IIFL Wealth Management has given its consent for an investment of Rs 50 crore ($7.3 million) by way of additional capital into Chephis Capital.

Meanwhile, the board had also approved the deal under which global private equity firm General Atlantic will pick 21.61 per cent equity stake in IIFL Wealth. The deal, which is said to be General Atlantic’s biggest India-related transaction in 11 years, was inked in October last year.

The PE firm will pick the stake in IIFL Wealth Management for Rs 1,122.34 crore ($173 million)

IIFL Wealth will allot 1.7 million equity shares at a price of Rs 586.70 each aggregating Rs 100 crore besides 13.63 million warrants at the same price worth Rs 863 crore to the PE firm. In addition, General Atlantic will buy shares worth Rs 159.34 crore from the firm’s employees, it had said earlier.

Upon full conversion of warrants into equity, it will pick 21.61 per cent stake, valuing the firm at Rs 5,193 crore ($800 million).

IIFL Wealth that also houses the alternative investment funds business of the group had said that it will use the Rs 963 crore it would get through primary issuance of shares for the continued growth and platform expansion.

The firm was largely known for wealth management solutions besides its realty PE funds and hedge funds but it has been slowly pushing up the alternative investment practice. In August, it said it is looking to raise Rs 1,000 crore to invest in startups and venture capital funds.

Headquartered in Mumbai, the company has 14 domestic offices in Mumbai, Ahmedabad, Bangalore, Baroda, Chandigarh, Chennai, Goa, Hyderabad, Jaipur, Kanpur, Kolkata, Ludhiana, New Delhi and Pune and a presence through its subsidiaries in global financial hubs.

IIFL Holdings, a public-listed holding company for broking, investment banking among other financial services, is led by its executive chairman Nirmal Jain.


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IIFL Wealth Management buys NBFC Chephis Capital

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