Blackstone set to become key investor in IIFL Finance with 15% stake | Company News

Jain and co-promoter R Venkataraman will reportedly invest  ₹1,200 crore, while Mumbai-based investor Rohit Kothari, through his fund Anchorage Capital, will contribute around ₹100 crore. The promoters’ investment is intended to help them retain a combined stake of about 25 per cent in the company, the report stated.

According to the report, Blackstone will subscribe to compulsory convertible preference shares (CCPS), while the promoters will be issued warrants. The world’s largest alternative asset manager, with nearly $1.4 trillion in assets under management (AUM) will also reportedly secure representation on IIFL Finance’s board.

The proposed capital infusion is expected to improve IIFL Finance’s capital adequacy ratio by around five percentage points to 28 per cent. This could improve the company’s credit rating and lower its borrowing costs by 100-150 basis points, according to the report.

The deal is expected to be announced on Tuesday following board approval. IIFL Finance had said last week that its board would meet on November 10 to consider the fundraise.

Months-long investor search

The proposed investment follows months of negotiations as IIFL Finance sought a minority investor to strengthen its capital base. According to The Economic Times report, the company was looking to raise up to ₹5,000 crore by selling a 10-20 per cent stake to a minority investor. The promoters could also subscribe to warrants to limit dilution.

Advent International, TPG and Singapore’s Temasek Holdings were among the other investors that had considered acquiring a stake in the company.

IIFL Finance’s assets under management (AUM) grew 38 per cent year-on-year to ₹1.24 trillion at the end of the September quarter. The company last raised capital in May 2024, mobilising ₹1,272 crore through a rights issue after coming under the Reserve Bank of India’s scrutiny over regulatory deviations in its gold loan business.

Separately, Fairfax Financial Holdings, promoted by Prem Watsa, is set to exit IIFL Finance by selling its 13.7 per cent stake to an investor. The proposed exit is linked to the acquisition of a majority stake in IDBI Bank under the government’s disinvestment programme. Fairfax will continue to have a board nominee after the Blackstone transaction until its eventual exit, The Economic Times reported.

The proposed investment would add to Blackstone’s exposure to India’s financial services sector. In October 2025, the investment firm announced a ₹6,196.5 crore investment in Federal Bank for a stake of up to 9.99 per cent. It is also the controlling shareholder and promoter of Aadhar Housing Finance, with a 65 per cent stake.