HedgeCo.Net — Funds managed by Blackstone Private Equity will invest Rs 5,000 crore, about $535 million, in Indian non-bank lender IIFL Finance, taking a stake of roughly 16% on a fully diluted basis, the company said on November 10. The investment is the largest part of a Rs 6,414 crore (about $686 million) primary capital raise approved by IIFL Finance’s board the same day.
Blackstone will invest through Ingot SG Pte Ltd, a Singapore vehicle backed by funds managed or advised by Blackstone affiliates, via compulsorily convertible preference shares priced at Rs 602 each. The shares convert into equity within 18 months of allotment. IIFL Finance’s exchange filing values the full preferential issue at about Rs 6,414.2 crore, comprising roughly 8.55 crore preference shares and 2.1 crore warrants.
Promoters Nirmal Jain and Venkataraman Rajamani will invest Rs 1,264 crore through warrants, and Anchorage Capital will put in Rs 150 crore of primary equity, according to the company’s statement as reported by Business Standard. Promoters held 24.76% of the company as of September 30, 2026.
The transaction requires shareholder and regulatory approval. IIFL Finance has called an extraordinary general meeting for December 4, 2026, to approve an increase in authorized capital and the preferential issue. Moneycontrol described the deal as among the largest primary private equity investments in a listed Indian non-bank financial company.
The deal fits a broader pattern of global private capital providing growth equity to Indian lenders, which need fresh capital to expand loan books while keeping leverage within regulatory limits. For Blackstone, a minority stake in a listed, promoter-led lender offers exposure to Indian credit growth with public-market liquidity, while the conversion structure gives IIFL time to deploy the capital before dilution takes full effect.