IIFL Wealth shares jump over 7% after Bain Capital buys 25% stake

Shares of IIFL Wealth surged over 7% in Thursday's intraday trade after Bain Capital, a global private multi-asset alternative investment firm, said that it has agreed to acquire 24.98% equity stake in IIFL Wealth Management Limited. The deal was struck between the two companies on Wednesday, March 30.  

The financial services stock surged 7% to hit intraday high of Rs 1796.60 a share on the BSE. At 12.40 PM, shares of IIFL Wealth were trading with over 2% gain to Rs 1702.40 per share. As on March 31, 2022, the scrip has gained nearly 40% in the past one year.  

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With 11% gain amid volatility in the past one month, the shares have outperformed benchmark Nifty50, which jumped around 4% during the same period.  

With over 7% gain on Thursday, IIFL Wealth shares came near its 52-week high value of Rs 1818, which it traded on September 14 last year. The stock tanked to a year-low of Rs 1061.05 a share on the BSE in April last year.  

As on December 31,2021, IIFL Wealth Management Ltd, one of the leading wealth and alternative asset managers in India, has an AUM size of $44 billion. It was founded by first generation entrepreneurs, Karan Bhagat, MD & CEO, IIFL Wealth and Yatin Shah, Joint-CEO, IIFL Wealth, in 2008,  

“We are delighted to be partnering with Karan, Yatin and the management team of IIFL Wealth. The Company is well poised to benefit from secular tailwinds of wealth creation in the economy, greater financialisation, and increasing penetration of formal wealth management. We look forward to working with the team on the next phase of IIFL Wealth’s growth journey,” said Pawan Singh, Managing Director at Bain Capital on the acquisition.  

"Bain Capital’s investment is a testament to our strong leadership franchise in the financial services space, and in our team’s ability to continue to execute and grow the business to scale. We look forward to having them on board,” said Karan Bhagat, Managing Director and Chief Executive Officer, IIFLWAM, on the acquisition.