Key Takeaways
- • Blackstone is reported to be the lead contender to acquire a 15% stake in IIFL Finance through a proposed USD 500-600 million primary equity infusion, according to people familiar with the talks cited by Moneycontrol.
- • Advent International has also expressed interest in the non-banking financial company, and IIFL Finance's board is scheduled to meet on November 10 to consider bids from the two private equity firms.
- • The transaction is expected to be entirely primary capital, with promoters Nirmal Jain and R Venkatraman contributing about USD 100 million to maintain their stake of slightly above 24%, and Fairfax Financial Holdings (13.64%) not expected to exit.
- • IIFL Finance reported Q2 FY27 AUM of Rs 1.24 lakh crore (up 38% year-on-year), PAT of Rs 805 crore (up 93%), and GNPA of 1.5% as of September 2026.
Summary
Blackstone is reportedly in the lead to acquire a 15% stake in IIFL Finance through a proposed equity investment of USD 500-600 million, while rival private equity firm Advent International has also expressed interest in the non-banking financial company (NBFC), according to people familiar with the negotiations as reported by Moneycontrol. Talks with both firms began in September 2026 and have reached final stages, with valuation details reportedly being finalized. Emails sent to IIFL Finance, Blackstone and Advent International were unanswered at the time of publication.
The deal is expected to be the largest transaction in India's NBFC sector this year. It is structured as an entirely primary capital raise with no secondary share sale. Promoters Nirmal Jain and R Venkatraman are expected to contribute about USD 100 million combined to keep their stake just above 24%. Fairfax Financial Holdings, which holds 13.64%, may not exit as part of the transaction, sources said. The transaction will not carry a board seat for the incoming investor. IIFL Finance's board is set to meet on November 10 to consider the equity raise, and the announcement is expected after that meeting. Sources indicated that the deal would go to whichever bidder offers the better overall terms.
The capital infusion is expected to lift IIFL Finance's capital adequacy ratio to about 30%, with Tier-1 capital at 25%, supporting growth particularly in retail lending. For Blackstone, the investment would be its most significant in India's NBFC space following its 9.99% stake in Federal Bank last year. Advent holds about 8.5% of Yes Bank and is an investor in Svatantra Microfin.
The raise follows improved reported performance. For Q2 FY27, IIFL Finance posted consolidated AUM of Rs 1.24 lakh crore, up 38% year-on-year, net revenue of Rs 2,340 crore, and profit after tax of Rs 805 crore, up 93% year-on-year. Gross NPAs improved to 1.5% as of September 2026 from 2.1% a year earlier. Nearly 90% of AUM is now secured, comprising gold loans, home loans and MSME loans.
The deal is expected to be the largest transaction in India's NBFC sector this year. It is structured as an entirely primary capital raise with no secondary share sale. Promoters Nirmal Jain and R Venkatraman are expected to contribute about USD 100 million combined to keep their stake just above 24%. Fairfax Financial Holdings, which holds 13.64%, may not exit as part of the transaction, sources said. The transaction will not carry a board seat for the incoming investor. IIFL Finance's board is set to meet on November 10 to consider the equity raise, and the announcement is expected after that meeting. Sources indicated that the deal would go to whichever bidder offers the better overall terms.
The capital infusion is expected to lift IIFL Finance's capital adequacy ratio to about 30%, with Tier-1 capital at 25%, supporting growth particularly in retail lending. For Blackstone, the investment would be its most significant in India's NBFC space following its 9.99% stake in Federal Bank last year. Advent holds about 8.5% of Yes Bank and is an investor in Svatantra Microfin.
The raise follows improved reported performance. For Q2 FY27, IIFL Finance posted consolidated AUM of Rs 1.24 lakh crore, up 38% year-on-year, net revenue of Rs 2,340 crore, and profit after tax of Rs 805 crore, up 93% year-on-year. Gross NPAs improved to 1.5% as of September 2026 from 2.1% a year earlier. Nearly 90% of AUM is now secured, comprising gold loans, home loans and MSME loans.
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