Abu Dhabi Investment Authority (ADIA) has agreed to pay Rs 2,200 crore ($281.6 million) to acquire a 20% stake in IIFL Home Finance Ltd, in one of the largest equity investments in the affordable housing finance segment in India.
IIFL Home Finance Limited said it would use the additional capital to continue its granular expansion strategy into new markets to address the significant and growing demand for housing loans, in an exchange filing on Thursday evening.
“This investment aims to support the company for its next phase of growth, as it meets the significant demand in India’s large, under-served and fast-growing affordable housing finance market, said Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA.
Established in 2006 as a wholly owned subsidiary of IIFL Finance, IIFL Home Finance reported assets under management of Rs 23,617 crore as of March 31, 2022.
“We are delighted to partner with ADIA who bring to the table long term commitment and rich experience of supporting growing businesses. The investment recognizes IIFL Home Finance’s position as one of India’s largest providers of affordable housing loans and how well it is placed to continue to target the large, resilient housing finance market,” Nirmal Jain, Founder, IIFL Group said.
“IIFL Home Finance has built a strong foundation and is at an inflection point as it leverages new strategies such as co-lending, foraying into more granular products and expanding reach across Tier II and Tier III regions,” Monu Ratra, CEO, IIFL Home Finance said.
Avendus Capital & IIFL Securities were the financial advisors to IIFL Home Finance for this transaction.
