The Competition Commission has given its approval to global private equity firm General Atlantic Singapore Fund's proposed acquisition of 21.61 per cent stake in IIFL Wealth Management for an estimated Rs 1,122 crore.
IIFL Wealth Management Ltd is a wealth management subsidiary of IIFL Holdings Ltd.
The fair trade regulator, which keeps tab on unfair business practices across sectors, has approved the acquisition as the deal may not have an adverse impact on competition in the country.
IIFL Holdings, in October, announced that General Atlantic will make a strategic investment to become a minority shareholder in its wealth subsidiary IIFL Wealth Management.
"General Atlantic's investment will help to support the company's continued growth and platform expansion as the premier wealth management company in India," IIFL Holdings had said.
In a tweet today, the Competition Commission of India (CCI) said it has approved the "acquisition of up to 21.61 per cent of share capital of India Infoline Wealth Management Ltd by General Atlantic Singapore".
Overall, the IIFL Holdings had said the transactions would result "in total investments of Rs 1,122.34 crore from General Atlantic (GA) leading to an equity ownership by GA of up to 21.61 per cent in IIFLW on a fully diluted basis"
As on September 30, 2015, IIFL Holdings held 76.79 per cent stake in IIFL Wealth Management.
IIFL Wealth was founded in 2008 by IIFL Holdings with Karan Bhagat, Yatin Shah and Amit Shah. IIFL Wealth has about USD 12 billion worth of assets for over 8,600 clients through its over 150 relationship managers.
