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IIFL Finance to raise Rs 6,414 Cr led by Blackstone

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IIFL Finance to raise Rs 6,414 Cr led by Blackstone

IIFL Finance has approved a Rs 6,414 crore ($686 million) primary capital raise, with Blackstone leading the round.

The board cleared the preferential issue at a meeting on Tuesday. The deal is one of the largest primary private equity infusions in a listed Indian non-banking finance company, according to IIFL.

Funds managed by Blackstone Private Equity will invest Rs 5,000 crore ($535 million) in compulsorily convertible preference shares, which will convert into equity at Rs 602 a share, in line with the regulatory price, within 18 months of allotment. The company said this would give Blackstone a stake of about 16 % on a fully diluted basis.

The promoters, Nirmal Jain and R. Venkataraman, will invest Rs 1,264 crore (135 million) through a preferential allotment of warrants, and will continue as co-promoters. Anchorage Capital is also participating, with a Rs 150 crore (16 million) primary equity investment. The company and its promoters have signed definitive agreements with both investors.

IIFL Finance said the entire sum will go in as primary capital. On a pro forma basis for September 2026, which would lift its capital adequacy ratio from roughly 17% to roughly 30%. The company said the money would support growth in its secured lending businesses, particularly gold finance, and could, over time, improve its credit ratings and lower its borrowing costs.

Nirmal Jain, founder and managing director of IIFL Finance, said: “We are delighted to welcome Blackstone as a partner in IIFL Finance. Their investment is a strong endorsement of the franchise our team has built, and of the opportunity to bring formal, secured credit to millions of underserved households and small businesses across India.


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