New Delhi: Abu Dhabi Investment Authority, Singapore’s sovereign wealth fund GIC and Public Sector Pension Investment Board of Canada are in race to pick 25% stake in Reliance Home Finance for 1,500-2,000 crore, sources said.

The funds will be used for expansion of the Anil Ambani group company, which is focusing on affordable housing for future growth.

When contacted a Reliance Capital spokesperson declined to comment.

Sources, however, said that all three large funds have shown keen interest in purchasing stake in Reliance Home Finance, a subsidiary of Reliance Capital. The mortgage lender is looking to sell 24.99% stake in the company and it will fetch anywhere between 1,500-2,000 crore through the transaction, they added.

Last week, Reliance Home Finance, in a filling to the stock exchanges, announced that it has entered into exclusive discussions with an overseas institutional investor for a potential equity investment into the company. It had said the discussions are subject to confirmatory due diligence, definitive documentation, and necessary approvals.

Earlier this fiscal, the company had said it is targeting to achieve an assets under management (AUM) of 50,000 crore by 2021 and is focusing on affordable housing for future growth.

For the year ended 31 March, 2018, the company made disbursements of 8,695 crore, an year-on-year increase of 19%. Its total income increased by 46% to 1,671 crore and profit before tax by 97% to 272 crore.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.

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