July 21, 2024

Block Deal Buzz: IIFL Finance stock declines 7% after shares worth ₹1,358 crore change hands

IIFL Finance shares witnessed a decline of more than 7 percent during the initial trade on December 22, following a substantial block deal amounting to 1,358 crore.

Approximately 2.4 crore shares, equivalent to a 6.5 percent stake in the company, were transacted on the exchanges at an average price of 555 each. Notably, the floor price of the block deal was set at a discount of approximately 7 percent compared to the stock’s closing price on Thursday, which stood at 595.15.

At 9:34 am, IIFL Finance’s shares were experiencing a nearly 6 percent decline, trading at 560.10 on the NSE. The block deal not only influenced the stock price but also led to a substantial surge in trading activity, with 3 crore shares exchanging hands on the exchanges. This figure is notably higher than the one-month daily traded average of 6 lakh shares.

According to sources reported by CNBC-TV18, the private equity firm Fairfax participated as one of the sellers in the block trade that took place today.

In this block deal, Fairfax divested slightly over 5.2 percent of its equity, while the buyers included long-only funds and certain domestic institutional investors, as mentioned in the report.

Around 2.4 crore shares of IIFL Finance, translating into 6.5% of the total equity of the company exchanged hands in a block deal valued at 1,358 crore, as per the report.

Based on the most recent shareholding data of the company, Fairfax initially held a 20.89 percent stake, which is anticipated to reduce to approximately 15 percent following the completion of the block deal. The CNBC-TV18 report also affirmed that the private equity firm is committed to retaining the remainder of its outstanding stake in IIFL Finance.

The stock has registered a third consecutive day of decline, currently trading at 565.8, reflecting a 5% decrease. The stock has experienced a 14% downturn over the past three trading sessions and has seen declines in five out of the last six sessions.

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