The proposed transaction is expected to give Blackstone an approximately 16 per cent ownership stake in IIFL Finance after accounting for all potential equity shares. (File Photo)
\n\nGlobal investment giant Blackstone is preparing to acquire an approximately 16 per cent interest in IIFL Finance through an investment of Rs 5,000 crore, marking a major development for the Indian non-banking financial company (NBFC). The proposed transaction forms the largest component of a Rs 6,414 crore fundraising initiative cleared by IIFL Finance's board on Tuesday. The capital infusion is expected to strengthen the company's financial position, improve its lending capacity and provide additional resources to expand its business across underserved segments of the Indian credit market.
\n\nAccording to the company's stock exchange filing, investment funds managed by Blackstone Private Equity will subscribe to compulsorily convertible preference shares worth Rs 5,000 crore through a preferential allotment. These securities will subsequently convert into equity shares at Rs 602 apiece within 18 months from the date of allotment.
\n\nFollowing the conversion, Blackstone is expected to hold approximately 16 per cent of IIFL Finance on a fully diluted basis.
\n\nWelcoming the investment, IIFL Finance Founder and Managing Director Nirmal Jain said, "We are delighted to welcome…
Original source: https://www.timesnownews.com/business-economy
