IIFL Finance has approved a Rs 6,414-crore primary capital raise led by Blackstone, a transaction that will give the global investment firm an approximately 16 percent stake in the non-banking financial company and significantly strengthen its lending capacity. The board approved the preferential issue at its meeting on November 10, subject to regulatory and shareholder approvals.
Blackstone will invest Rs 5,000 crore through compulsorily convertible preference shares. The securities will convert into equity shares at Rs 602 apiece within 18 months of allotment, giving Blackstone an approximately 16 percent holding in IIFL Finance on a fully diluted basis, according to a company statement.
The capital raise also includes a Rs 1,264-crore investment by IIFL Finance promoters Nirmal Jain and R Venkataraman through a preferential allotment of warrants. They will continue as co-promoters alongside Blackstone. Anchorage Capital will participate with a primary equity investment of Rs 150 crore.
The entire investment will be infused as primary capital. IIFL Finance said this would raise its capital adequacy ratio from around 17 percent to approximately 30 percent on a pro forma basis as of September 2026. The ratio measures the capital available to absorb losses and is a key indicator of a lender’s ability to expand its loan book while maintaining a financial buffer.
Nirmal Jain, founder and managing director of IIFL Finance, said the investment would strengthen the company’s balance sheet and provide headroom to scale its franchises, invest further in technology and deepen co-lending partnerships with banks while maintaining discipline on risk and capital.
The company said the funding is expected to improve its cost of funds and accelerate growth across its secured lending businesses, particularly gold finance. It also plans to use Blackstone’s global scale and operational expertise in technology, data and artificial intelligence to expand these businesses, strengthen its franchise and attract and retain talent.
The proposed appointment of Blackstone representatives to IIFL Finance’s board is expected to add to corporate governance and oversight while preserving the existing management’s entrepreneurial and execution focus. Blackstone’s India private equity leadership said the firm would partner with Jain, Venkataraman and the management team to support the company’s continued growth.
IIFL Finance shares closed at Rs 627 on Monday, above the Rs 602 price at which Blackstone will invest. The stock has gained about 3 percent this year. Moneycontrol had reported on November 9 that Blackstone was leading discussions to acquire a 15 to 16 percent stake through a $500 million to $600 million equity investment.
The transaction remains subject to regulatory and shareholder approvals. Once completed, it will be among the largest primary private equity investments in a listed Indian NBFC and will place additional capital behind IIFL Finance’s expansion in secured retail lending.
