Blackstone Acquires 15.57% Stake in IIFL Finance for $532 Million

Blackstone Inc. is acquiring a 15.57% stake in IIFL Finance Ltd., a mid-sized Indian shadow lender, for approximately 50 billion rupees ($532 million). The investment is being executed through the Singapore-based vehicle Ingot SG Pte. Ltd. via the subscription of 83.1 million compulsorily convertible preference shares.

This transaction is part of a broader capital infusion exceeding 6,200 crore rupees. Promoters Nirmal Jain and R Venkataraman are contributing 1,200 crore rupees to retain a combined 25% stake, while Rohit Kothari is providing approximately 100 crore rupees through Anchorage Capital. Blackstone is expected to secure a seat on the company board as a result of the deal.

IIFL Finance expects the fundraise to reduce borrowing costs by 100-150 basis points and increase its capital adequacy ratio to 28%. Simultaneously, Fairfax Financial Holdings is preparing to exit its 13.7% stake in IIFL Finance to fund a majority stake acquisition in IDBI Bank.