Key Takeaways
- • IIFL Finance's board approved on November 10, 2026 a primary capital raise of Rs 6,414 crore (about $686 million) via preferential issue, led by Blackstone and the company's promoters.
- • Blackstone Private Equity funds will invest Rs 5,000 crore (about $535 million) through compulsorily convertible preference shares (CCPS) for an approximately 16% stake, convertible into equity at Rs 602 per share within 18 months of allotment.
- • Promoters Nirmal Jain and R. Venkataraman will invest Rs 1,264 crore (about $135 million) via warrants, and Anchorage Capital will contribute Rs 150 crore (about $16 million) in primary equity.
- • The entire infusion is primary capital, expected to lift the capital adequacy ratio from about 17% to about 30% on a proforma September 2026 basis.
- • Shares rose as much as 10.85% to Rs 694.65 on the BSE before trading 7.44% higher at Rs 673.30 at 2:00 PM.
Summary
The board of directors, at its meeting held on November 10, 2026, approved the raise by way of a preferential issue. Funds managed by Blackstone Private Equity will invest Rs 5,000 crore through a preferential allotment of compulsorily convertible preference shares for an approximately 16% stake. The CCPS will convert into equity shares at Rs 602 per share within 18 months of allotment, the company said in a regulatory filing.
Promoters Nirmal Jain and R. Venkataraman will invest Rs 1,264 crore through a preferential allotment of warrants. Anchorage Capital will participate through a Rs 150 crore primary equity investment. IIFL Finance said the entire investment will be infused as primary capital, raising the capital adequacy ratio from about 17% to about 30% on a proforma September 2026 basis.
Speaking to NDTV Profit, CFO Vikas Jain said the proceeds will be used for new business and debt repayment, with around 70% directed to growth and 30% to repaying debt. He said the fund infusion will happen around Q4. Trilegal is acting as legal counsel to the company, and Khaitan & Co. is acting as legal counsel to Blackstone.
At 2:00 PM, the shares were trading 7.44% higher at Rs 673.30 on the BSE.
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