The deal marks one of the largest Primary Private Equity Infusions in a Listed Indian NBFC.
The CCPS will convert into equity shares at Rs 602 per share (within 18 months of allotment, giving Blackstone a 16 per cent stake.
IIFL Finance promoters Nirmal Jain and R. Venkataraman will invest Rs 1,264 crores (USD 135 million) through a preferential allotment of warrants. Anchorage Capital will participate in the transaction through a Rs 150 crores (USD 16 million) primary equity investment.
The funds from will strengthen capital adequacy, improve its cost of funds, accelerate growth in its gold finance business and support ambition to become one of India’s largest diversified retail NBFCs, IIFL said.
The company expects to benefit from Blackstone’s global scale, network and operational expertise, including in technology, data, and AI.
This would help scale secured lending businesses, attract and retain high-quality talent, and strengthen its overall franchise. The proposed appointment of Blackstone representatives to the Board is expected to further strengthen governance standards and oversight, while preserving the Company’s entrepreneurial culture and focus on execution, it added.
“Blackstone 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. Venkat and I are investing Rs 1,264 crore alongside Blackstone, which reflects our own conviction in the Company’s next phase of growth,” Nirmal Jain, Founder and Managing Director, IIFL Finance, said in a statement.
“This partnership is about more than capital. Blackstone brings deep experience in building market-leading businesses in India, strong governance discipline, and a global perspective. The investment strengthens our balance sheet and gives us the headroom to scale our franchises, invest further in technology, and deepen our co-lending partnerships with banks, while staying disciplined on risk and capital,” he said.
“We are pleased to invest in IIFL Finance, a leading retail lending platform in India with a strong franchise and commitment to serving underserved customers. Building great businesses has been central to our approach over more than two decades of investing in India, and we look forward to partnering with Nirmal, Venkat and the management team to support IIFL Finance’s continued growth,” Mukesh Mehta, Chief Investment Officer for India Private Equity and Senior Managing Director, Blackstone said.
The entire investment will be infused as primary capital. This will raise the company’s capital adequacy ratio from 17 per cent to 30 per cent, support the next phase of growth across its secured lending businesses, and could improve its credit ratings and lower its borrowing costs over time, IIFL said.
