TPG Likely to Acquire At Least 20 Percent Stake in IIFL Capital

US private equity major TPG is expected to enter India’s expanding capital markets and wealth management space through a strategic investment in IIFL Capital. The proposed transaction is likely to involve the acquisition of a minimum 20 percent stake, with discussions currently underway on multiple deal structures.

TPG has initiated due diligence on IIFL Capital as part of the ongoing negotiations. Queries sent to both parties did not elicit responses at the time of publication.

Deal Structure and Stake Sale​

As part of the proposed transaction, TPG is understood to be evaluating the acquisition of some or all of the stake held by Canadian investment firm Fairfax. Fairfax holds a combined 27 percent stake in IIFL Capital through FIH Mauritius Investments.

In addition to purchasing Fairfax’s shares either partially or fully, TPG is also expected to infuse fresh capital into IIFL Capital. This combination could result in TPG emerging with a stake of at least 20 percent in the company.

Sources familiar with the discussions indicate that the final contours of the transaction, particularly valuation-related aspects, are still being worked out. The deal is expected to be concluded in the price range of Rs 370 to Rs 400 per share, with negotiations ongoing.

Stock Performance and Valuation Context​

IIFL Capital’s share price recently touched a 52-week high of Rs 403. The stock has gained about 11 percent since the beginning of 2026, while delivering a one-month return of nearly 72 percent, reflecting strong investor interest amid deal expectations.

Strategic Significance for IIFL Capital​

If completed, this would mark the first major group-level transaction for IIFL following its 2019 restructuring, which split the group into three separate listed entities: IIFL Finance, IIFL Capital, and 360 One Wealth Asset Management.

IIFL Capital entered the wealth management segment in November 2024, expanding beyond its established presence in institutional equities and investment banking. As of September 30, 2025, the company reported a net worth of Rs 2,810 crore and assets under management and customer of Rs 2.48 lakh crore, including Rs 44,400 crore of wealth assets under management. It posted a net profit of Rs 85 crore in Q2 FY26.

Importance of the Deal for TPG​

For TPG, the proposed investment would represent its first significant exposure to India’s wealth management sector. It would also be the firm’s second major buyout in Indian financial services, following its acquisition of a near 100 percent stake in Poonawalla Housing Finance in 2023.

If the talks are successfully concluded, the transaction could mark a key milestone in both TPG’s India strategy and IIFL Capital’s next phase of growth in wealth management and capital markets.