New Delhi [India], November 10 (ANI): Global investment firm Blackstone is set to acquire nearly 16 per cent stake in IIFL Finance for Rs 5,000 crore as part of a larger Rs 6,414 crore capital raising plan approved by the company's board on Tuesday.

According to the stock exchange filing, funds managed by Blackstone Private Equity will invest Rs 5,000 crore through a preferential allotment of compulsorily convertible preference shares, which will be converted into equity shares at Rs 602 per share within 18 months of allotment.

The investment will give Blackstone approximately 16 per cent stake in IIFL Finance on a fully diluted basis.

IIFL Finance Founder and Managing Director Nirmal Jain said, 'We are delighted to welcome Blackstone as a partner in IIFL Finance. Their investment is a strong endorsement of the franchise our team has built, and of the opportunity to bring formal, secured credit to millions of underserved households and small businesses across India.'

As part of the fundraising, IIFL Finance's promoters, Nirmal Jain and R Venkataraman, will invest Rs 1,264 crore through warrants, while Anchorage Capital will contribute another Rs 150 crore.

The company said the fresh capital infusion is expected to increase its capital adequacy ratio from around 17 per cent to 30 per cent, based on September 2026 figures, strengthening its ability to expand lending operations, particularly in the gold loan business.

Blackstone will also receive board representation under the proposed investment arrangement, while the existing promoters will continue as co-promoters. The company has clarified that the transaction will not result in a change in control.

Highlighting the significance of the investment, Jain said, 'The investment strengthens our balance sheet and gives us the headroom to scale our franchises, invest further in technology, and deepen our co-lending partnerships with banks, while staying disciplined on risk and capital.'

The proposed transaction remains subject to regulatory and shareholder approvals. (ANI)