Key facts
- IIFL Finance said the capital raise totals 64.14 billion rupees, with Blackstone contributing 50 billion rupees.
- Existing investors Nirmal Jain and R. Venkataraman will invest 12.64 billion rupees in the issue, IIFL Finance said.
- Anchorage Capital will invest another 1.5 billion rupees, according to IIFL Finance.
- IIFL Finance said the investment will raise its capital adequacy ratio to about 30% from 17%.
- IIFL Finance said the capital will support growth in secured lending, particularly gold finance, and could help improve credit ratings and lower borrowing costs over time.
Blackstone will invest 50 billion Indian rupees ($535 million) for an approximately 16% stake in India's IIFL Finance, the non-banking financial company said on November 10. The investment is part of a 64.14 billion rupee capital raise.
The issue will also include a 12.64 billion rupee investment by existing investors Nirmal Jain and R. Venkataraman, while Anchorage Capital will invest another 1.5 billion rupees, IIFL Finance said.
IIFL Finance said the investment will raise its capital adequacy ratio to about 30% from 17%. The company said the additional capital will support growth in its secured lending businesses, particularly gold finance, and could help improve its credit ratings and lower borrowing costs over time.
The rupee conversion uses a rate of 93.9275 Indian rupees to the dollar.