IIFL Finance share price jumped over 10% on Wednesday after the company announced a primary capital raise of Rs 6,414 crore, led by global investment firm Blackstone and its promoters. IIFL Finance shares rallied as much as 10.85% to Rs 694.65 apiece on the BSE.
The board of directors of IIFL Finance, at its meeting held on November 10, 2026, approved a primary capital raise of Rs 6,414 crore ($686 million) by way of a preferential issue.
The company said that funds managed by Blackstone Private Equity will invest Rs 5,000 crore ($535 million) through a preferential allotment of compulsorily convertible preference shares (CCPS) for an approximately 16% stake.
“The CCPS will convert into equity shares at Rs 602 per share within 18 months of allotment,” IIFL Finance said in a regulatory filing.
Concurrently, the company's promoters, Nirmal Jain and R. Venkataraman, will invest Rs 1,264 crore ($135 million) through a preferential allotment of warrants.
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Anchorage Capital will participate in the transaction through a Rs 150 crore ($16 million) primary equity investment.
“The entire investment will be infused as primary capital. This will raise the capital adequacy ratio from ~17% to ~30% (proforma Sept-26),” IIFL Finance said.
Speaking to NDTV Profit, Vikas Jain, CFO of IIFL Finance said that the company will utilise the proceeds from Blackstone deal for new business and repayment of debt.
“Around 70% of the funds will be used for growth, while 30% will be used for the repayment of debt. The fund infusion will happen around Q4,” Jain said.
Trilegal is acting as legal counsel to the Company, and Khaitan & Co. are acting as legal counsel to Blackstone.
At 2:00 PM, IIFL Finance share price was trading 7.44% higher at Rs 673.30 apiece on the BSE.
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