Blackstone IIFL stake gives Indian lender a new an...

Summary

• A Blackstone IIFL stake of about 15 percent gives the Indian lender fresh capital, in a fundraise worth more than ₹6,200 crore.
• How the Blackstone IIFL stake worksIIFL Finance’s board approved a preferential issue of about ₹6,414 crore.
• Also, the Blackstone IIFL stake gives IIFL a new anchor investor.

AI Generated Summary

A Blackstone IIFL stake of about 15 percent gives the Indian lender fresh capital, in a fundraise worth more than ₹6,200 crore.

Blackstone plans to put in around ₹5,000 crore through a Singapore-based vehicle. Last week the company announced a November 10 board meeting on the raise.

How the Blackstone IIFL stake works

IIFL Finance’s board approved a preferential issue of about ₹6,414 crore. Blackstone’s vehicle, Ingot SG Pte Ltd, will receive roughly 8.31 crore convertible preference shares priced at ₹602 each.

Those shares must turn into equity, one for one, either on an agreed earlier date or after 17 months and 15 days. Once they convert, Blackstone should hold about 15.57 percent of the company on a fully diluted basis.

The money goes into the company itself. It does not pay existing shareholders who sell their shares. Lenders like IIFL borrow from banks and institutions and raise funds in debt markets, so a stronger capital base helps them keep lending.