Blackstone picks up 16% stake in NBFC IIFL Finance for Rs.5,000-Cr

Mumbai-headquartered, publicly listed non-banking financial company (NBFC) IIFL Finance has raised INR 5,000 Cr from Blackstone through a preferential allotment of compulsorily convertible preference shares (CCPS). This investment is part of a larger INR 6,414 Cr capital raise, which includes an INR 1,264 Cr investment from promoters Nirmal Jain and R. Venkataraman via warrants and an INR 150 Cr primary equity investment from Anchorage Capital.Trilegal acted as legal counsel to IIFL Finance, and Khaitan & Co. served as legal counsel to Blackstone.IIFL Finance is a retail-focused NBFC providing secured lending services. The firm intends to use the capital to strengthen its capital adequacy ratio, improve its cost of funds, and accelerate growth within its gold finance business. The company also plans to use the investment to support its expansion, invest in technology, and deepen co-lending partnerships with banks.The infusion is projected to increase the capital adequacy ratio of the firm from approximately 17% to 30% on a pro forma basis by September 2026. The representatives from Blackstone are expected to join the board of IIFL to provide oversight and governance.