Blackstone eyes 15% stake in IIFL Finance in $600M deal
What's the story
Blackstone is leading the race to acquire a 15% stake in IIFL Finance, a non-banking financial company (NBFC), through a proposed equity investment of $500-600 million, as per a Moneycontrol report. The deal comes as part of IIFL Finance's plan to raise capital at its board meeting scheduled for November 10. Advent International, another private equity investor, is also interested in the NBFC.
Negotiation progress
Deal talks with Blackstone and Advent International began in September
The deal talks with Blackstone and Advent International started in September and have gained momentum in recent weeks.
While the transaction won't give the incoming investor a board seat, final detailing on valuations is underway.
The decision on who will take the stake is expected to be made once US markets open later today.
Board meeting
IIFL Finance's board to meet on November 10
IIFL Finance's board will meet on November 10 to discuss the equity raise.
The deal is likely to be announced after this meeting, which is expected to consider bids from both PE firms.
This potential investment would inject fresh capital into IIFL Finance and support its growth plans, especially in retail lending businesses.
Financial growth
IIFL Finance's financial performance has improved significantly
The proposed capital raise comes as IIFL Finance has seen an improvement in its financial performance, with a growing loan book and better asset quality.
For Q2 FY27, the company reported consolidated assets under management (AUM) of ₹1.24 lakh crore, a 38% year-on-year increase.
Its net revenue stood at ₹2,340 crore while profit after tax (PAT) rose by 93% YoY to ₹805 crore.
Asset quality
Shift toward secured lending and improved asset quality
IIFL Finance's gross non-performing assets (GNPA) ratio improved to 1.5% in September 2026, down from 2.1% a year ago.
The company has also been shifting its portfolio toward secured lending, with nearly 90% of its AUM now comprising secured loans such as gold loans and home loans.
At the end of September 2026, IIFL Finance reported a consolidated capital adequacy ratio of 23.5%.