IIFL Finance on Tuesday announced a Rs 6,414 crore capital raise, with global investment firm Blackstone contributing Rs 5,000 crore for an approximately 16 per cent stake and company promoters injecting another Rs 1,264 crore.
The fundraise, one of the largest primary equity infusions in a listed Indian non-banking financial company (NBFC), will increase IIFL Finance’s capital adequacy ratio from 17 per cent to 30 per cent on a proforma 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, will invest Rs 5,000 crore through compulsorily convertible preference shares (CCPS), which will convert into equity shares at Rs 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 NBFC’s promoters, Nirmal Jain and Venkataraman Rajamani, will invest Rs 1,264 crore through warrants. Anchorage Capital will invest Rs 150 crore through CCPS. The warrants issued to the promoters will carry an exercise price of Rs 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 will strengthen IIFL Finance’s balance sheet, improve its cost of funds and support growth, particularly in its gold finance business. The stronger capital position could also help improve its credit ratings and lower borrowing costs over time.
The company expects to leverage Blackstone’s global network and operational expertise in technology, data and artificial intelligence to scale its secured lending businesses. 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 Jain, who is also managing director of IIFL Finance.
“Venkat and I are investing Rs 1,264 crore alongside Blackstone, which reflects our own conviction in the company’s next phase of growth,” he said.
IIFL Finance has a network of 5,091 branches and offers gold, business, home and microfinance loans, among other lending products.