Blackstone to buy 16% stake in IIFL Finance through preferential allotment

Blackstone will invest Rs. 5,000 crore in IIFL Finance for an approximately 16% stake, IIFL Finance announced on November 10, 2026. The investment is part of the lender's Rs. 6,414 crore fundraising plan. Blackstone will make the investment through convertible preference shares, which will later convert into regular equity.

IIFL Finance is an Indian non-banking finance company. The fundraising plan also includes Rs. 1,264 crore from co-promoters Nirmal Jain and R. Venkataraman through warrants, and Rs. 150 crore from Anchorage Capital in a separate investment. Blackstone will hold a 15.57% stake once the preference shares convert, with conversion expected within 18 months. The shares are priced at Rs. 602 each.

IIFL Finance expects its capital adequacy ratio to rise from around 17% to nearly 30%, giving it more room to lend. The company plans to use the funds to grow its gold finance and secured lending businesses, invest in technology and build partnerships with banks. Founder and Managing Director Nirmal Jain said, "The investment strengthens our balance sheet and gives us the headroom to scale our franchises."