IIFL Wealth Management will look to raise US$110 million through the sale of equity shares to six investors in a bid to "expand its wealth management platform".
Together, the six investors proposed to purchase a total of 4.49 million equity shares in IIFL Wealth Management, representing a 5.1% stake in IIFL Holdings Limited's wealth management subsidiary.
Existing private equity backer, General Atlantic, which currently holds a 21.6% stake in the firm, will invest an additional US$13.8 million, a release from IIFL Wealth Management stated.
The deal also brought in a new basket of investors, including Ward Ferry, Rimco (Mauritius) Ltd, and Amansa Holding Private Limited - each looking to invest US$26.6 million. Meanwhile, Steadview and HDFC Standard Life plan to invest the balance.
"This investment further enhances our ability to expand both organically as well as inorganically across geographies, while also enabling us to improve our credit platform and serve as a sponsor to our rapidly growing AIF schemes," explained Karan Bhagat, co-founder, managing director, CEO of IIFL Wealth and Asset Management.
IIFL Holdings chairman, Nirmal Jain, said the wealth management business will continue to benefit from the underlying positive trends in the financial services sector that enabled the firm to increase its asset base by over 30% last year.
The raise comes at a time when IIFL Holdings is preparing to demerge its wealth, finance, and securities businesses into three separate listed companies next year.