IIFL Finance stock surged 5.6% to ₹662.05 on Wednesday after the company's board approved a Rs 6,414 crore primary capital raise through preferential allotment. Blackstone committed Rs 5,000 crore for approximately 16% of the company. The announcement came during Indian market closure for Diwali, making this the first trading session for investor action on the news.
IIFL Finance's capital adequacy ratio is projected to rise from around 17% to nearly 30% on a proforma basis following the capital infusion.
Motilal Oswal maintained a Buy rating and raised FY27 and FY28 earnings per share estimates by 7% and 11% respectively, setting a target of Rs 850. HSBC raised its target to Rs 810. DAM Capital maintained Buy with a target of Rs 880.
Promoters Nirmal Jain and R. Venkataraman infused Rs 1,264 crore. Anchorage Capital contributed Rs 150 crore.
Investors tracking IIFL Finance should monitor how the capital infusion impacts capital adequacy metrics and earnings delivery against analyst estimates.