Blackstone to acquire 16% stake in IIFL Finance for ₹5,000cr
What's the story
IIFL Finance has announced a major capital raise of ₹6,414 crore ($686 million), led by global investment firm Blackstone. The deal is one of the largest primary private equity investments in a listed Indian non-banking financial company (NBFC). As part of the funding round, Blackstone will invest ₹5,000 crore ($535 million) for an approximately 16% stake on a fully diluted basis.
Additional investments
Co-promoters and Anchorage Capital to contribute as well
Along with Blackstone, IIFL Finance's co-promoters Nirmal Jain and R. Venkataraman will invest ₹1,264 crore ($135 million) through warrants.
Anchorage Capital will also join the funding round with a primary equity investment of ₹150 crore ($16 million).
The funds managed by Blackstone Private Equity will subscribe to compulsorily convertible preference shares (CCPS) worth ₹5,000 crore under the proposed arrangement.
Conversion details
CCPS to convert into equity shares within 18 months
The CCPS subscribed by Blackstone will convert into equity shares at ₹602 apiece, as per applicable regulatory pricing guidelines, within 18 months of allotment.
IIFL Finance's founder and Managing Director Nirmal Jain said the partnership reflected Blackstone's confidence in the lending platform and its potential to provide formal, secured credit to underserved households and small businesses across India.
Impact statement
Investment strengthens IIFL Finance's balance sheet
Jain emphasized that the investment from Blackstone strengthens IIFL Finance's balance sheet and provides room to scale their franchises, invest in technology, and deepen co-lending partnerships with banks while maintaining discipline on risk and capital.
Blackstone's Chief Investment Officer for India Private Equity and Senior Managing Director Mukesh Mehta, described IIFL Finance as a leading retail lending platform committed to serving underserved customers.