Blackstone to buy about 16% stake in India's IIFL Finance for $535 million
BX•Blackstone will invest 50 billion rupees ($535 million) for an approximately 16% stake in IIFL Finance, as part of a 64.14 billion rupee capital raise. The raise is expected to lift IIFL Finance’s capital adequacy ratio to about 30% from 17%.
1. Capital raise details
Blackstone will invest 50 billion rupees ($535 million) for an approximately 16% stake in IIFL Finance as part of a 64.14 billion rupee capital raise. Existing investors Nirmal Jain and R. Venkataraman will invest 12.64 billion rupees, while Anchorage Capital will invest another 1.5 billion rupees.
2. Capital and lending plans
The investment will raise IIFL Finance’s capital adequacy ratio to about 30% from 17%, the company said. The additional capital will support growth in its secured lending businesses, particularly gold finance, and could help improve credit ratings and lower borrowing costs over time.
