Blackstone and promoters to invest ₹6,414 crore in IIFL Finance

The Board of Directors of IIFL Finance, a retail-focused non-banking financial company (NBFC), have approved a primary capital raise of ₹6,414 crore ($686 million) by way of a preferential issue.

Funds managed by Blackstone Private Equity will invest ₹5,000 crore ($535 million) through a preferential allotment of compulsorily convertible preference shares (CCPS). The preference shares will convert into ordinary equity shares at ₹602/share within 18 months of allotment, giving them an upwards of 15.5 per cent stake in the company.

Concurrently, IIFL’s promoters, Nirmal Jain and R. Venkataraman, will invest ₹1,264 crore ($135 million) through a preferential allotment of warrants which may be exercised in one or more tranches, also at ₹602 per share. Jain’s stake post issue will rise marginally to 12.83 per cent.

Anchorage Capital is participating in the transaction through a ₹150 crore ($16 million) equity investment.

IIFL Finance’s shares closed at ₹626.65 on the BSE on 10 November 2026.

The funds received from this transaction are expected to strengthen the company’s capital adequacy, improve its cost of funds, accelerate growth in its gold finance business, and support its ambition to become one of India’s largest diversified retail NBFCs, the company has said.

“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,” said Jain.

The company also expects to benefit from Blackstone’s global scale, network and operational expertise, including in technology, data, and artificial intelligence.

IIFL Finance has built a network of 5,091 branches across India and offers loan products including gold finance, business, home, microfinance, and other secured lending solutions.

This is the second financial transaction for Jain in recent times, with Canada’s Fairfax announcing plans to merge IIFL Capital into IDBI Bank as part of a larger deal only recently.