Blackstone acquires Aadhar Housing Finance Limited
As part of the transaction, the investment firm has infused Rs 800 crore primary equity capital into Aadhar to fund the company’s future growth.Tenzin Norzom
Blackstone on Tuesday announced that private equity funds managed by the company have acquired 97.7 percent stake in Aadhar Housing Finance Limited. It includes the entire stake held by existing controlling shareholders, Wadhawan Global Capital and Dewan Housing Finance Limited.
The investment firm has also infused Rs 800 crores primary equity capital into Aadhar to fund the company’s future growth.
Aadhar is a major housing finance company in India with a network of 316 branches across 20 states and union territories. It serves the home financing needs of low-income segment.
Speaking on the acquisition, Amit Dixit, Head of India Private Equity and Senior Managing Director at Blackstone, said,
“Our primary capital infusion of Rs 800 crores has approximately doubled the company’s net worth and reduced its debt to equity ratio roughly by half. We expect the rating agencies and company’s lenders to welcome the ownership transition to a long term, well capitalised and patient investor in Blackstone.”
Blackstone has been active in India since 2006 and has committed $10.4 billion investments in India through private equity, real estate, and tactical opportunities. The company’s asset management businesses include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets, and secondary funds.
Aadhar said it has a reach of more than 90 percent of the country’s low-income population and provides credit solutions that make home ownership more accessible.
Deo Shankar Tripathi, Managing Director and CEO at Aadhar confirmed that Blackstone’s ownership and the capital infusion have been received positively by stakeholders of the Company and said the investment is a testament to the dedication of the employees who have built the company.
Dixit also said he supports the government campaign, ‘Housing for All’ and wants to provide capital and much needed confidence to the Non-banking Financial Company (NBFC) and Home Finance Company (HFC) sector.