Blackstone, the world's largest alternative asset manager, will acquire an approximately 16 percent stake in IIFL Finance on a fully diluted basis through a Rs 5,000-crore investment, as part of a Rs 6,414-crore fundraise by the non-banking financial company (NBFC), according to a statement issued on November 10.
The board of IIFL Finance approved the capital raise through a preferential issue at its meeting on November 10. The transaction, subject to regulatory and shareholder approvals, is among the largest primary private equity investments in a listed Indian NBFC.
Blackstone will invest Rs 5,000 crore ($535 million) through a preferential allotment of compulsorily convertible preference shares (CCPS). These shares will be converted into equity shares at Rs 602 apiece within 18 months of allotment, giving Blackstone an approximately 16 percent stake in the company on a fully diluted basis, the statement said.
Moneycontrol had on November 9 reported that Blackstone was leading the race to acquire a 15 to 16 percent stake in IIFL Finance through a $500-600 million equity investment.
The company's promoters, Nirmal Jain and R Venkataraman, will invest Rs 1,264 crore ($135 million) through a preferential allotment of warrants, continuing as co-promoters alongside Blackstone. Anchorage Capital will also participate in the transaction with a primary equity investment of Rs 150 crore ($16 million).