TPG Nears Significant Stake in Nirmal Jain’s IIFL Capital
TPG Capital is on the verge of acquiring a 30-40% stake in billionaire Nirmal Jain’s flagship financial services firm, IIFL Capital Services. This move could position TPG as the single largest shareholder in the company, as insiders reveal. TPG’s interest aligns with Jain’s ambitious strategy to transform his brokerage into a robust wealth management firm, aiming to replicate the tremendous success of 360 One, which was previously part of his group.
Key Details About TPG’s Investment
– Due Diligence in Progress: TPG is currently conducting due diligence to secure a substantial minority stake. An open offer for an additional 26% stake is likely to follow, depending on the shares minority shareholders tender.
– Current Market Performance: As of Tuesday, IIFL Capital shares closed at ₹389 on the BSE, reflecting a 2.5% increase and a market capitalization of ₹12,119.18 crore.
Shareholder Breakdown
– Nirmal Jain and his wife Madhu hold 30.98% of shares.
– Fairfax, backed by Prem Watsa, stands as the second-largest shareholder with a 27.27% stake.
– The Abu Dhabi Investment Authority is also a notable investor.
– TPG’s potential investment could range from ₹3,635.7 crore to ₹4,847.6 crore, based on current pricing, not accounting for the open offer. If fully subscribed, the transaction might escalate to approximately ₹8,000 crore.
IIFL Capital’s Transition to Wealth Management
Based in Mumbai, IIFL Capital is pivoting to establish itself as a full-service wealth manager by 2024. The company rebranded from IIFL Securities to IIFL Capital in the previous fiscal year, expanding its reach with over 100 branches and 3,500 external wealth partners.
– Revenue Composition:
– Broking and related activities: 74% of total income in the first nine months of FY25.
– Distribution of financial products: 16% of income.
– Investment banking: 10% of income.
– IIFL Capital held a 0.67% market share of the turnover volume on the National Stock Exchange for the first half of FY25.
– Financial highlights for the first nine months of FY25 included a total income of ₹1,994 crore and a profit after tax (PAT) of ₹585 crore.
Future Aspirations and Market Context
Jain is focused on wealth accumulation, aspiring to capture the growing affluent client base in India. Over the past 18 months, IIFL has recruited over 100 relationship managers from prestigious banks like Citi and Barclays to boost its wealth management operations. The company aims to achieve ₹50,000 crore in assets under management.
India ranks third globally in terms of billionaires, boasting a robust wealth growth trajectory. The cumulative wealth of Indian billionaires surged by 42.1% in 2025, reaching $905.6 billion.
Conclusion: A Strategic Growth Partner
TPG’s investment in IIFL Capital signifies a strategic advance into the burgeoning wealth management sector. As Jain seeks to replicate the success of 360 One, a partnership with a financially potent investor like TPG becomes paramount for expanding IIFL’s capabilities. With IIFL Capital’s promising trajectory and the increasing wealth landscape in India, this deal could reshape the financial services sector in the coming years.