IIFL Finance Approves ₹6,414 Crore Fundraise; Blackstone to Invest ₹5,000 Crore for 16% Stake

IIFL Finance on Tuesday, November 10, approved a ₹6,414 crore capital raise, with global investment firm Blackstone agreeing to invest ₹5,000 crore for an approximately 16% stake in the non-banking financial company (NBFC).

The proposed investment will be made through compulsorily convertible preference shares (CCPS) at a conversion price of ₹602 per share. IIFL Finance’s promoters will invest another ₹1,264 crore, while Anchorage Capital will contribute ₹150 crore, taking the total proposed fundraise to ₹6,414 crore.

The announcement came on a day when Indian stock markets were closed for Diwali-Balipratipada. IIFL Finance shares last closed at ₹626.65 on the BSE on Monday, November 9, down 0.45%. Trading will resume on Wednesday, November 11.

The fundraise is expected to strengthen IIFL Finance’s balance sheet and provide additional capital for expanding its lending operations, particularly its gold loan business. The company expects its capital adequacy ratio to increase from around 17% to approximately 30% following the transaction, based on its September 2026 financial position.

Blackstone to Acquire 16% Stake in IIFL Finance

Under the proposed agreement, Blackstone-managed funds will invest ₹5,000 crore through CCPS, which will convert into equity shares within 18 months of allotment.

Following the conversion, Blackstone is expected to hold approximately 16% of IIFL Finance on a fully diluted basis.

The company’s promoters, including Nirmal Jain and R. Venkataraman, will contribute ₹1,264 crore through warrants. Anchorage Capital will invest ₹150 crore as part of the same fundraising exercise.

IIFL Finance and its promoters have entered into definitive agreements with Blackstone and Anchorage Capital. The transaction remains subject to shareholder and regulatory approvals.

Blackstone representatives may also join the company’s board following completion of the investment.

IIFL Finance Expects Capital Adequacy Ratio to Rise to 30%

IIFL Finance said the proposed capital infusion would increase its capital adequacy ratio to approximately 30% from around 17%, strengthening its capacity to expand its loan book.

The NBFC plans to use the additional capital to support growth across its lending businesses, including gold loans, home loans and business loans.

The company also expects the stronger capital position to support its funding profile and potentially lower borrowing costs over time.

The proposed transaction comes as IIFL Finance continues to expand its secured lending operations. The company has a network of more than 5,000 branches across India.

The ₹602 conversion price, the extent of equity dilution and the expected improvement in capital adequacy will be among the key details investors assess when trading resumes on November 11.

The investment is yet to receive the necessary approvals.

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