Blackstone to invest ~Rs5,000 cr for ~15.5% stake in IIFL Finance
Blackstone will invest about Rs 5,000 crore in IIFL Finance, acquiring roughly a 15.5% stake through compulsorily convertible preference shares. The deal is part of a broader capital raise of about Rs 6.4 trillion and is expected to lift IIFL’s capital adequacy ratio to around 28‑30% by next year. The transaction requires board and regulatory approvals and is slated for announcement on Tuesday.
Why it matters
The fresh capital should strengthen IIFL Finance’s balance sheet, allowing it to expand lending and potentially lower borrowing costs, according to the deal details (). Blackstone will become a major institutional shareholder, giving it exposure to India’s growing NBFC market ().
Key facts
- 1Blackstone will invest Rs 5,000 crore in IIFL Finance. businessworld.in
- 2The investment will give Blackstone an approximately 15.57% stake. streamlinefeed.co.ke
- 3Blackstone will subscribe to about 83.1 million compulsorily convertible preference shares at Rs 602 each. streamlinefeed.co.ke
- 4Total consideration for the stake is about 50 billion rupees (≈$532 million). streamlinefeed.co.ke
- 5The overall capital raise, including promoters and Anchorage Capital, totals Rs 6,414 crore. analyticsinsight.net
- 6IIFL Finance expects its capital adequacy ratio to rise from around 17% to nearly 30% after the fundraise. analyticsinsight.net
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.