2 new players eye Watsa's ₹3,500-crore IIFL stake

American private equity firm Advent International Corp and Singapore's Temasek Holdings are reportedly discussing the possibility of purchasing Fairfax Financial Holdings' stake in IIFL Finance. Blackstone Inc is also said to be interested in acquiring the stake from Fairfax, which aims to exit the company as part of a plan to acquire IDBI Bank.

Fairfax, founded by Indian-born Canadian billionaire Prem Watsa, owns a 13.7% stake in IIFL Finance through its wholly-owned subsidiary FIH Mauritius Investments. The firm would need to offload IIFL Finance shares to comply with regulations for its potential acquisition of IDBI Bank. The sale would also help fund the IDBI Bank buyout.

As of Thursday, IIFL Finance shares closed at 607.15 apiece on the BSE, giving Fairfax's IIFL holding a value of approximately ₹3,500 crore. Both Fairfax Financial Holdings and Advent International Corp declined to comment on the reported talks, while Temasek Holdings declined to comment on market speculation. IIFL Finance did not confirm any discussions with third parties but stated it would make all required disclosures under applicable law.