Key Takeaways
- • Blackstone is set to invest around INR 5,000 crore for a 15% stake in publicly listed NBFC IIFL Finance, per Economic Times reporting carried by Venture Intelligence News.
- • The total investment is expected to exceed INR 6,200 crore, including INR 100 crore from Anchorage Capital and INR 1,200 crore from promoters Nirmal Jain and R Venkataraman.
- • Existing investor Fairfax Financial Holdings is set to exit by selling its 13.7% stake as part of the transaction.
- • The capital infusion is expected to lift IIFL Finance's capital adequacy ratio by about 5 percentage points to 28%, and lower borrowing costs by 100-150 basis points.
- • In the September quarter, IIFL Finance reported PAT up 93% year-on-year to INR 805 crore and GNPA improved to 1.5% from 2.1% a year earlier.
Summary
Global private equity firm Blackstone is set to invest around INR 5,000 crore for 15% of IIFL Finance, the publicly listed, Mumbai-headquartered non-banking financial company, according to Economic Times reporting carried by Venture Intelligence News. Including INR 100 crore from Anchorage Capital and INR 1,200 crore from promoters Nirmal Jain and R Venkataraman, the overall investment will exceed INR 6,200 crore. The promoters will retain a combined stake of roughly 25%.
Blackstone will subscribe to compulsorily convertible preference shares (CCPS), while the promoters will be issued warrants. Blackstone will also receive board representation. The company expects the capital infusion to raise its capital adequacy ratio by about 5 percentage points to 28%, and to improve its credit rating, which would lower borrowing costs by 100-150 basis points.
Existing private equity investor Fairfax Financial Holdings will exit IIFL Finance by selling its 13.7% stake as part of the deal. IIFL Finance last raised capital in May 2024, when it mobilised INR 1,272 crore through a rights issue.
Financially, IIFL Finance reported net revenue of INR 2,340 crore in the September quarter, with profit after tax rising 93% year-on-year to INR 805 crore. Gross non-performing assets improved to 1.5% as of September-end, down from 2.1% a year earlier.
Blackstone will subscribe to compulsorily convertible preference shares (CCPS), while the promoters will be issued warrants. Blackstone will also receive board representation. The company expects the capital infusion to raise its capital adequacy ratio by about 5 percentage points to 28%, and to improve its credit rating, which would lower borrowing costs by 100-150 basis points.
Existing private equity investor Fairfax Financial Holdings will exit IIFL Finance by selling its 13.7% stake as part of the deal. IIFL Finance last raised capital in May 2024, when it mobilised INR 1,272 crore through a rights issue.
Financially, IIFL Finance reported net revenue of INR 2,340 crore in the September quarter, with profit after tax rising 93% year-on-year to INR 805 crore. Gross non-performing assets improved to 1.5% as of September-end, down from 2.1% a year earlier.
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