Alternate Asset Management firm Blackstone is set to acquire a 15.57% stake in IIFL Finance in a Rs 5,000 crore deal, leading a Rs 6,414 crore capital raise approved by the NBFC on Nov 10. This investment will make Blackstone a significant minority shareholder in the Indian lender.
IIFL Finance's board has also approved the preferential issue of 8.55 crore compulsorily convertible preference shares (CCPS), and 2.1 crore warrants at Rs 602 apiece.
The issue price is a discount of around 4% to the company's prevailing market price, according to the transaction.
Ingot SG Pte Ltd, a Blackstone-affiliated firm, will be subscribing to 8.30 crore CCPS for Rs 5,000 crore. This will result into a 15.57% holding in IIFL Finance on a fully diluted basis, after conversion of the preference shares.
Additionally, Anchorage Capital schemes will invest another Rs 150 crore through CCPS. The promoter group will participate through warrants, with IIFL Finance founder Nirmal Jain subscribing to Rs 903 crore of warrants and co-promoter Venkataraman Rajamani investing Rs 271 crore. Promoter entity Ardent Impex will subscribe to warrants worth Rs 90 crore.
Together, this will take the proposed fundraise to Rs 6,414.20 crore.
This fund infusion is expected to strengthen IIFL Finance's capital position and support its lending business. The additional capital is expected to support expansion in secured lending businesses, particularly gold finance.
IIFL Finance had last raised capital in May 2024, when it mobilised Rs 1,272 crore through a rights issue.
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