Business · Companies · 5 hrs ago
Blackstone reportedly plans 15% stake in IIFL Finance
Blackstone is reportedly set to invest about ₹5,000 crore in IIFL Finance for a 15% stake.
IIFL Finance is an Indian financial services company promoted by Nirmal Jain and co-promoter R Venkataraman.
The proposed investment is part of a capital infusion of more than ₹6,200 crore, with the promoters and investor Rohit Kothari also expected to contribute.
The company has been seeking a minority investor for months to strengthen its capital base.
The funds could raise IIFL Finance’s capital adequacy ratio to 28%, potentially improving its credit rating and lowering borrowing costs.
The deal is expected to be announced after the company’s board considers the fundraise on November 10.
Blackstone is reportedly set to invest around ₹5,000 crore for a 15 per cent stake in IIFL Finance.
The proposed investment is part of a capital infusion of more than ₹6,200 crore into the financial services company.
IIFL Finance’s promoters, Nirmal Jain and R Venkataraman, are reportedly set to invest ₹1,200 crore, while investor Rohit Kothari is expected to contribute around ₹100 crore through Anchorage Capital.
The proposed infusion is expected to raise IIFL Finance’s capital adequacy ratio by about five percentage points to 28 per cent.
The deal is expected to be announced after board approval, with IIFL Finance’s board due to consider the fundraise on November 10.
- Who
- Blackstone and IIFL Finance are involved. The company’s promoters and investor Rohit Kothari are also reportedly set to invest.
- What
- Blackstone is reportedly set to invest around ₹5,000 crore for a 15 per cent stake in IIFL Finance.
- When
- The deal is expected to be announced on Tuesday, November 10, following board approval.
- Where
- Not stated.
- Why
- The proposed capital infusion is intended to strengthen IIFL Finance’s capital base.
This story does not have two clearly opposing sides.
IIFL Finance raised ₹1,272 crore through a rights issue.
IIFL Finance held negotiations as it sought a minority investor to strengthen its capital base.
IIFL Finance said its board would meet on November 10 to consider the fundraise.
The board is due to consider the fundraise, and the deal is expected to be announced following approval.
- Blackstone’s proposed investment
- Around ₹5,000 crore
- Proposed Blackstone stake
- 15 per cent
- Total proposed capital infusion
- More than ₹6,200 crore
- Promoters’ planned investment
- ₹1,200 crore
- IIFL Finance capital adequacy ratio
- Expected to rise to 28 per cent