Blackstone to acquire 15% of IIFL for Rs 5,000 cr

Listen to this article in summarized format Listen Loading... × × Subscribe to Unlock AI Briefing and Premium Content New Year Offer 24 Hours Left Subscribe Now Already a member? Sign In What's Included Exclusive Stories Daily ePaper Access Smart Market Tools Curated Investment Ideas Ad-lite Experience Subscription Agencies Blackstone, the world’s largest alternative asset manager, will invest around Rs 5,000 crore for 15% of IIFL Finance , billionaire Nirmal Jain ’s financial services company, said people with knowledge of the matter. The capital infusion will end months of intense negotiations with investors as Jain tries to transform his company and achieve the kind of runaway success he has had in wealth management in the past. Joining Blackstone is Rohit Kothari, a Mumbai-based investor, via his fund Anchorage Capital. Promoters Nirmal Jain and R Venkataraman will invest Rs 1,200 crore — a move aimed at ensuring that they retain their combined stake at around 25%. Kothari will invest about Rs 100 crore of the Rs 5,000 crore. This will put the total infusion at a little above Rs 6,200 crore, said the people cited. ALSO READ | Blackstone opens second India office in Bengaluru ET Bureau Overseas investors currently hold about a fourth of the company with a similar amount owned by domestic institutions and individual investors. Live Events Blackstone will subscribe to compulsory convertible preference shares (CCPS) while promoters will be issued warrants. The capital infusion will boost IIFL Finance’s capital adequacy ratio by about 5 percentage points to 28%, improve rating and thus lower borrowing costs by 100-150 basis points. Blackstone will have board representation. A basis point is one-hundredth of a percentage point. IIFL is set to announce the deal on Tuesday after board approval. The company had said last week that its board would meet on November 10 to approve the fundraise. Shake-up at FinServ Co IIFL Finance, Blackstone and Kothari declined to comment. Interestingly, on October 21, while responding to queries, Blackstone’s spokesperson told ET the fund had not conducted diligence on the company. Trilegal is the legal counsel for IIFL Finance and Khaitan advised Blackstone, said the people cited. The share valuation was conducted by KPMG and BDO, they said. The IIFL Finance stock ended nearly flat on the BSE on Monday at 627.05 for a market value of Rs 26,763 crore. The stock has risen 19% from the year before at a time when the Nifty has given negative returns. Nirmal Jain had told ET in an interview on October 19 that IIFL planned to raise up to Rs 5,000 crore by selling a 10-20% stake to a minority investor, while promoters could subscribe to warrants to limit dilution. The company last raised capital two years ago in May 2024 when it mobilised Rs 1,272 crore via a rights issue soon after it came under Reserve Bank of India (RBI) scrutiny for regulatory deviations on gold loans. Advent, TPG and Singapore’s Temasek Holdings were also in the fray to acquire a stake in IIFL Finance, which saw assets under management (AUM) expand 38% to Rs 1.24 lakh crore at the end of the September quarter from the year before. Separately, Prem Watsa-promoted Fairfax Financial Holdings is set to exit IIFL Finance by selling its 13.7% stake to an investor as part of a deal linked to the acquisition of a majority stake in IDBI Bank under the government’s disinvestment programme. Although fresh capital infusion will reduce Fairfax’s stake, it will continue to have a nominee of the board after the Blackstone deal until its eventual exit, said one of the persons cited. In October 2025, Blackstone announced a Rs 6,196.5 crore investment in Federal Bank through affiliate Asia II Topco XIII Pte to acquire a stake of up to 9.99%. Blackstone is also the controlling shareholder and promoter of Aadhar Housing Finance with a 65% stake. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel ) Read More News on iifl finance Blackstone investment in IIFL Finance Nirmal Jain Rohit Kothari Anchorage Capital IIFL Finance capital infusion temasek holdings reserve bank of india RBI scrutiny IIFL Finance Fairfax Financial Holdings exit (Catch all the Business News , Breaking News and Latest News Updates on The Economic Times .) Subscribe to The Economic Times Prime and read the ET ePaper online. ... more less (You can now subscribe to our Economic Times WhatsApp channel ) Read More News on iifl finance Blackstone investment in IIFL Finance Nirmal Jain Rohit Kothari Anchorage Capital IIFL Finance capital infusion temasek holdings reserve bank of india RBI scrutiny IIFL Finance Fairfax Financial Holdings exit (Catch all the Business News , Breaking News and Latest News Updates on The Economic Times .) Subscribe to The Economic Times Prime and read the ET ePaper online. ... more less