IIFL Finance board approved a ₹6,414 crore fundraise on Tuesday, November 10. A Blackstone affiliate will invest ₹5,000 crore to acquire a 15.57% stake in the company. Promoters and Anchorage Capital funds also joined the deal. The firm will issue shares and warrants at ₹602 each to boost its capital.
CNBC-TV18 Newsbreak Confirmed: IIFL Finance's board has approved a ₹6,414 crore preferential issue, with a Blackstone affiliate investing ₹5,000 crore and promoters subscribing to warrants worth ₹1,264 crore.
IIFL Finance's board has approved a ₹6,414 crore preferential issue of compulsorily convertible preference shares (CCPS) and warrants at ₹602 apiece, with a Blackstone affiliate set to invest ₹5,000 crore in the non-banking financial company (NBFC).
The development follows CNBC-TV18's earlier report on September 7, 2026, about the proposed IIFL Finance-Blackstone deal.
The board approval, announced on Tuesday, November 10, will see Ingot SG Pte Ltd, an investment vehicle backed by funds managed or advised by Blackstone affiliates, subscribe to 8.31 crore CCPS worth nearly ₹5,000 crore.
The transaction will give the Blackstone affiliate a 15.57% stake in IIFL Finance on a fully diluted basis, assuming the conversion of the preference shares and exercise of the relevant warrants.
How is the ₹6,414 crore fundraise structured?
Apart from Blackstone, Anchorage Capital funds will invest a combined ₹150 crore in the preferential issue.
Anchorage Capital Scheme II will subscribe to CCPS worth ₹60 crore, while Anchorage Capital Scheme III will invest ₹90 crore. Both funds are registered with the Securities and Exchange Board of India (SEBI).
The promoter and promoter group will also participate in the fundraise through warrants worth a combined ₹1,264.2 crore.
This includes warrants worth ₹903 crore for promoter Nirmal Bhanwarlal Jain, ₹270.9 crore for Joint Managing Director Venkataraman Rajamani and ₹90.3 crore for Ardent Impex Private Limited.
The company will issue 2.1 crore warrants to the promoters at ₹602 each, with 25% of the subscription amount payable upfront and the remaining 75% at the time of exercising the warrants.
The total preferential issue comprises 8.55 crore compulsorily convertible preference shares and 2.1 crore warrants, aggregating to approximately ₹6,414.2 crore.
What rights will Blackstone get in IIFL Finance?
Alongside the investment, IIFL Finance's board has approved certain special rights for the Blackstone affiliate, subject to shareholder approval.
These include the right to nominate two non-executive directors to IIFL Finance's board, as long as the investor and its affiliates collectively maintain a holding of around 10% or more, subject to the specified thresholds.
The investor will also have certain reserved-matter consent rights and pre-emptive rights to participate in future issuances, subject to the agreed shareholding thresholds.
The rights also extend to board representation at IIFL Home Finance and IIFL Samasta Finance under specified shareholding conditions.
However, the company clarified that the proposed transaction will not result in a change in control. The investors will be classified as public shareholders, while the existing promoters will continue to be classified as part of the promoter group.
When will shareholders vote on the deal?
IIFL Finance has scheduled an extraordinary general meeting (EGM) for December 4, 2026, to seek shareholder approval for the preferential issue, amendments to its Articles of Association and the special rights proposed for the Blackstone affiliate.
The board has also approved the re-designation of Venkataraman Rajamani from Joint Managing Director to Non-Executive Non-Independent Director, subject to the requisite approvals.
The proposed allotment remains subject to shareholder approval and applicable regulatory and statutory clearances.
Ahead of the announcement on Tuesday, shares of IIFL Finance closed at ₹627.05 on Monday, down 0.39%, or ₹2.45, on the day.