Blackstone Inc. is among the global investment firms reportedly considering the acquisition of Fairfax Financial Holdings’ stake in IIFL Finance Ltd., as Fairfax weighs exiting the Indian non-bank lender to comply with regulatory requirements linked to its proposed acquisition of IDBI Bank. Fairfax, founded by Indian-born Canadian billionaire Prem Watsa, held a 15.2% stake in IIFL Finance as of June 30, with the company valued at around $2.9 billion. According to people familiar with the matter, Blackstone is in discussions with Fairfax and other shareholders, although the plans remain preliminary and could change. The potential transaction comes as India’s financial services sector attracts increasing interest from global investors, encouraged by rising credit demand, growing household savings flowing into formal investments and rapid digitisation. Blackstone invested more than $700 million last year for a 9.9% stake in Federal Bank, highlighting its growing interest in India’s financial sector. Fairfax is simultaneously advancing plans to acquire a 60.7% stake in IDBI Bank, with Indian authorities reportedly nearing acceptance of its improved offer. The proposed acquisition could be valued at about $6.2 billion at current market prices, potentially making it one of the largest foreign investments in India’s banking sector. If the IDBI Bank deal goes through, Fairfax is expected to consolidate some of its existing Indian lending investments to comply with regulatory rules. Fairfax also holds a 40% stake in CSB Bank. Neither Fairfax nor IIFL Finance immediately responded to queries, while Blackstone declined to comment.
