Business & FinanceBreaking NewsBreakingLatest News
Blackstone set to become key investor in IIFL Finance with 15% stake
Sentiment: NeutralHigh Priority
What Happened?
Blackstone plans to invest ₹5,000 crore for a 15% stake in IIFL Finance, part of a larger ₹6,200 crore capital infusion. The deal aims to enhance IIFL's capital adequacy ratio.
Key points
- Blackstone's investment will be in the form of compulsory convertible preference shares (CCPS).
- Promoters Nirmal Jain and R Venkataraman will invest ₹1,200 crore.
- Mumbai-based investor Rohit Kothari will contribute around ₹100 crore.
- The capital infusion is expected to improve IIFL's capital adequacy ratio by about five percentage points.
- IIFL Finance's assets under management grew 38% year-on-year to ₹1.24 trillion.
Key insights
- The investment may lead to lower borrowing costs for IIFL Finance.
- Blackstone's involvement could enhance IIFL's market credibility.
- This deal reflects ongoing interest in India's financial services sector.
Why it matters
This investment could strengthen IIFL Finance's capital base and improve its credit rating.
Tags
Entities
Blackstone· CompanyIIFL Finance· CompanyNirmal Jain· PersonR Venkataraman· PersonRohit Kothari· PersonAdvent International· CompanyTPG· CompanyTemasek Holdings· Company
Source
Business Standard
