Funds managed by Blackstone Private Equity will invest ₹5,000 crore (US$535m) in IIFL Finance for about 16% of the Indian non-bank lender on a fully diluted basis, IIFL said on 10 November 2026 after its board approved a ₹6,414 crore preferential issue.
Why Blackstone (funds managed by Blackstone Private Equity) is buying IIFL Finance Limited (c.16% fully diluted stake)
IIFL said the money will strengthen its capital adequacy, lower its cost of funds and accelerate growth in gold finance, and that it expects to draw on Blackstone's scale, network and expertise in technology, data and AI. Blackstone representatives are to join the board.
“We are delighted to welcome Blackstone as a partner in IIFL Finance. Their investment is a strong endorsement of the franchise our team has built, and of the opportunity to bring formal, secured credit to millions of underserved households and small businesses across India.”
Deal terms and financing
Blackstone will subscribe for compulsorily convertible preference shares that convert into equity at ₹602 a share, in line with the regulatory price, within 18 months of allotment. The promoters will invest ₹1,264 crore through preferential warrants and remain co-promoters, and Anchorage Capital will invest ₹150 crore in equity. The company and its promoters have signed definitive agreements with Blackstone and Anchorage. IIFL expects its capital adequacy ratio to rise from about 17% to about 30%.
Regulatory approvals and timing
The transaction is subject to customary regulatory and shareholder approvals.
Market context
IIFL Finance is a retail-focused non-bank lender offering gold, business, home and microfinance loans through 5,091 branches. The deal is one of the largest primary private equity investments in a listed Indian NBFC.
