IIFL Finance shares rally 5% as Blackstone leads Rs 6,414 crore capital infusion
IIFL Finance shares surged on Wednesday after the company announced a Rs 6,414 crore capital infusion led by Blackstone, which will invest Rs 5,000 crore. The fundraise, also involving promoter investments and Anchorage Capital, aims to strengthen capital adequacy, lower funding costs and accelerate growth in secured lending.
On Wednesday, IIFL Finance shares surged by up to 4.90%, reaching an intraday peak of Rs 657.70 during trading hours, following the company's announcement of a substantial Rs 6,414 crore ($686 million) primary capital infusion. This significant investment was spearheaded by global investment firm Blackstone, alongside the company's promoters, Nirmal Jain and R. Venkataraman.
Blackstone Private Equity committed Rs 5,000 crore ($535 million) through a preferential allotment of compulsory convertible preference shares (CCPS), while Jain and Venkataraman contributed Rs 1,264 crore ($135 million) via warrants and Anchorage Capital made a primary equity investment of Rs 150 crore ($16 million). The newly raised funds are expected to bolster IIFL Finance's capital adequacy, reduce its cost of funds, and speed up growth in its gold finance business, a secured retail lending segment.
The company also aims to leverage Blackstone's global network and expertise to expand its secured lending operations, attract talent, and enhance its market position by appointing Blackstone representatives to its board.
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