Advent, Temasek in talks for Fairfax stake in IIFL Fin

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, ET BureauLast Updated: Sep 11, 2026, 12:43:00 AM IST

Synopsis

Advent International and Temasek Holdings are reportedly in talks to acquire Fairfax Financial's stake. Fairfax is looking to exit IIFL Finance as part of its IDBI Bank acquisition plan. This stake sale will help Fairfax comply with regulations and fund the IDBI Bank buyout. Fairfax currently holds a significant stake in IIFL Finance, which is valued at approximately ₹3,500 crore.

Kolkata: American private equity firm Advent International Corp and Singapore's Temasek Holdings are among the investors in talks to buy out Fairfax Financial Holdings' stake in IIFL Finance, said two people familiar with the matter.

Blackstone Inc is already reported to be in the fray to buy the stake from Fairfax, which is looking to exit from IIFL Finance as part of a plan to acquire IDBI Bank.

Fairfax, set up by Indian-born Canadian billionaire Prem Watsa, currently holds a 13.7% stake in non-banking financial company IIFL Finance through wholly owned subsidiary FIH Mauritius Investments.

People in the know said Fairfax would need to offload IIFL Finance shares to comply with regulations in sync with its potential acquisition of 60.7% stake in IDBI Bank. The sale would also partly fund the IDBI Bank buyout.

IIFL Finance shares gained 0.32% to close at 607.15 apiece on the BSE on Thursday, taking its market capitalisation to ₹25,760 crore. At this price, Fairfax's IIFL holding would be worth about ₹3,500 crore.

Fairfax Financial Holdings and Advent International Corp did not respond to ET's emailed queries till press time, while a Temasek Holdings spokesperson said, "We decline to comment on market speculation."

An IIFL Finance spokesperson said, "The queries relate to Fairfax's shareholding and any discussion it may or may not be having with third parties. IIFL Finance cannot comment on behalf of Fairfax or confirm market speculation. The company will make all disclosures required under applicable law." Fairfax held 15.2% in IIFL Finance at the end of June while it offloaded 1.5% to Capital group entities for ₹374 crore in July, reducing its holding to 13.7%. Among its major interests in India's banking and financial services space, CSB Bank holds a key position where the Canadian investor has 40% ownership. Fairfax may be looking to merge CSB Bank with IDBI Bank after the proposed acquisition.

Meanwhile, Fairfax, with a 30.5% holding in IIFL Capital, a wealth management and investment banking unit, agreed to raise the stake to 51%. If it acquires IDBI Bank, IIFL Capital is also likely to be merged with the bank, said the people cited earlier.

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