IIFL Finance to raise ₹6,414 crore from Blackstone, promoters, others | Company News

IIFL Finance, a non-banking financial company (NBFC), on Tuesday announced a ₹6,414 crore capital raise, with global investment firm Blackstone investing ₹5,000 crore for an approximately 16 per cent stake, while its promoters will invest ₹1,264 crore alongside the US-based investor.

The fundraise, one of the largest primary equity infusions in a listed Indian NBFC, will increase the company’s capital adequacy ratio from around 17 per cent to 30 per cent on a pro forma basis as of September 2026, providing it with additional headroom to expand its secured lending businesses.

The investment will be made through a preferential issue of securities. Blackstone, through its Singapore-based investment vehicle Ingot SG Pte Ltd, will invest ₹5,000 crore through compulsorily convertible preference shares (CCPS), which will convert into equity shares at ₹602 apiece within 18 months of allotment. This will translate into a 15.57 per cent stake in IIFL Finance on a fully diluted basis.

The company’s promoters, Nirmal Jain and Venkataraman Rajamani, will invest ₹1,264 crore through warrants, while Anchorage Capital will invest ₹150 crore through CCPS. The warrants issued to the promoters will carry an exercise price of ₹602 per share, with 25 per cent of the subscription amount payable upfront and the remaining 75 per cent at the time of exercise.

The capital infusion is expected to strengthen the company’s balance sheet, improve its cost of funds and support growth, particularly in its gold finance business. IIFL Finance said the stronger capital position could also help improve its credit ratings and lower borrowing costs over time.

The company also expects to leverage Blackstone’s global network and operational expertise in technology, data and artificial intelligence to scale its secured lending businesses and strengthen its franchise. The proposed appointment of Blackstone representatives to the board is expected to strengthen governance and oversight.

“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,” said Nirmal Jain, founder and managing director of IIFL Finance.

“Venkat and I are investing ₹1,264 crore alongside Blackstone, which reflects our own conviction in the company’s next phase of growth,” he added.

IIFL Finance has a network of 5,091 branches and offers gold, business, home and microfinance loans, among other lending products.