The shares of IIFL Finance witnessed a notable decline of over 7% right at the start of trading on December 22, triggered by a substantial Rs 1,358 crore block transaction.
Transaction Details
About 2.4 crore shares, making up 6.5% of IIFL Finance, were traded in this major deal. The average trading price was Rs 555 per share, showing a 7% discount from the previous day’s close of Rs 595.15.
Market Reaction and Trading Volume
The stock of IIFL Finance was observed trading at Rs 560.10 on the NSE, down nearly 6% at 9:34 AM. The deal led to a significant increase in trade volumes, reaching 3 crore shares compared to the usual monthly average.
Fairfax Sells Part of Its Stake
Fairfax offloaded over 5.2% of its stake in IIFL Finance through the block deal, with buyers being long-only funds and domestic institutional players. This sale reduced Fairfax’s holding in IIFL Finance from 20.89% to 15%.
Post-Deal Position of Fairfax
Despite the substantial sale, Fairfax remains invested in IIFL Finance, holding onto its residual stake, which reflects their ongoing trust in the firm’s future, as reported by the media.