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IIFL finance stock drops 6%

IIFL Finance Shares Drop Over 7% After Rs 1,358 Crore Block Deal

In the opening trade on December 22, IIFL Finance shares experienced a decline of more than 7 percent following a block deal valued at Rs 1,358 crore. The transaction involved the exchange of 2.4 crore shares, representing a 6.5 percent stake, at an average price of Rs 555 per share. The block deal’s floor price was about 7 percent lower than the stock’s Thursday closing price of Rs 595.15.

As of 9:34 am, IIFL Finance shares were trading nearly 6 percent lower at Rs 560.10 on the NSE. The block deal also led to a significant increase in trading volumes, with 3 crore shares changing hands, well above the one-month daily traded average of 6 lakh shares.

The parties involved in the transaction were not confirmed, but sources reported that private equity firm Fairfax was one of the sellers in the block trade. Fairfax reportedly sold a little over 5.2 percent equity in the deal, while long-only funds and some domestic institutional investors were buyers. Following the block deal, Fairfax’s stake in IIFL Finance is expected to reduce from 20.89 percent to around 15 percent, according to the company’s latest shareholding data. The report also mentioned that the PE firm is committed to holding the remaining outstanding stake in IIFL Finance.

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