Blackstone Leads Race For 15% Stake In IIFL Finance With Up To $600 Million Investment

Global private equity firm Blackstone has reportedly emerged as the frontrunner to acquire a 15% stake in IIFL Finance through a proposed equity investment of $500 million to $600 million.

Advent International is also competing for the investment in the non-banking financial company (NBFC), according to a report by Moneycontrol.

Negotiations with both investors began in September and have intensified in recent weeks, with the transaction reportedly approaching its final stages.

IIFL Finance's board is scheduled to meet on Nov 10 to consider the proposed capital raise. Sources indicated that an announcement could follow the meeting, depending on the outcome of negotiations.

The proposed investment would reportedly be structured entirely as a primary capital infusion, rather than a sale of existing shareholders' stakes.

The incoming investor is not expected to receive a board seat, while negotiations over valuation and other transaction terms continue.

IIFL Finance promoters Nirmal Jain and R Venkatraman may jointly invest $100 million as part of the proposed fundraise to preserve their combined shareholding of slightly above 24%.

Fairfax Financial Holdings, which holds 13.64% in the company, is not expected to sell shares through the transaction.

As per the report, any decision by Fairfax concerning its investment would remain separate from the proposed capital raise.

The proposed infusion could support IIFL Finance's expansion plans, particularly across its retail lending operations.

Following the investment, the company's overall capital ratio is expected to reach approximately 30%, with Tier 1 capital projected at 25%.

If completed, the transaction could rank among India's largest NBFC investments this year.

Blackstone previously acquired a 9.99% stake in Federal Bank, according to the report.

Advent International, meanwhile, holds approximately 8.5% in Yes Bank and has invested in Ananya Birla-promoted Svatantra Microfin, which is preparing for an initial public offering.

The final investor, valuation and transaction structure remain subject to negotiations and the company's approval process.