Carlyle to buy Edelweiss' Nido Home Finance for ₹2,100 crore

US-based asset manager The Carlyle Group Inc. will acquire the housing loan unit of Edelweiss Financial Services Ltd, Nido Home Finance Ltd, in a ₹2,100 crore deal, the Rashesh Shah-led financial services firm informed the exchanges on Monday.

The deal will see investment funds affiliated with Carlyle Asia Partners—CA Sardo Investments and Aditya Puri's family office, Salisbury Investments Pvt.—pick up a 45% stake in Nido from Edelweiss through a secondary purchase and make a primary equity capital infusion of ₹1,500 crore.

Collectively, both funds will acquire a majority stake in Nido through a mix of shares and warrants.

Aditya Puri, former chief executive and managing director of HDFC Bank, is a senior adviser on Carlyle's Asia private equity team.

Upon completion, these funds will hold approximately 73% of Nido on a fully diluted basis.

Through the secondary transaction, Edelweiss will sell 31.2 million shares for ₹602 crore. As part of the ₹1,500 crore primary infusion, it will issue 25.7 million fresh shares to CA Sardo Investments and another 185,000 to Salisbury. Both issues will take place at ₹193 per share.

CA Sardo and Salisbury will also get 514 million and 369,000 fresh warrants, respectively, priced at ₹193 apiece.

The issue price of the shares indicates a 73% premium over the stock's closing price on the previous trading day.

Edelweiss may also receive an upside share, based on Carlyle's realizing returns above a specified threshold, the company said.

The deal is subject to regulatory approvals and is expected to close by 31 July 2026, Edelweiss said.

AZB & Partners acted as legal advisers to Edelweiss, and Trilegal acted as legal advisers to Carlyle.

In fiscal 2024-25, Nido contributed 5.5% to Edelweiss's top line, or ₹ 521 crore, and 14% to the company's net worth.

Win-win-win

The company, in a presentation to investors, said the transaction creates a "win-win-win" for all stakeholders. For Edelweiss, the deal advances the objective of value creation. For Nido, it reinforces growth momentum by infusion of fresh capital. And for Carlyle, it gives them an entry into India's housing financing sector.

"We are thrilled to partner with Edelweiss to support the next phase of Nido’s growth journey," Sunil Kaul, partner and Asia financial services sector lead, Carlyle, said. "Housing remains a critical national priority for India, and we have strong conviction in the growth potential of the housing finance industry."

Established in 2010, Nido provides home loans to customers across the affordable housing and mass-market segments. It serves over 800 talukas in India and currently manages assets worth ₹4,804 crore.

This marks the second housing finance deal within the span of one week. On 3 February, private equity firm Advent International said it would acquire a 14.3% stake in Aditya Birla Housing Finance Ltd for ₹2,750 crore, valuing the company at ₹19,250 crore on a post-money basis.

The deal comes at a time when housing finance companies (HFCs) are increasingly leaning on non-housing loans to protect margins and growth. Ratings agency Icra Ltd expects healthy earnings and growth for HFCs in FY26-27.

“Icra expects healthy growth of 15-17% in HFCs' assets under management during 2025-26 and 2026-27," the agency said in a January 2026 report. Growth in the non-home loans segment has been increasing over the past few quarters, the report read. “Icra expects the share of NHLs to inch up further in the near term amid competitive challenges in the housing loan segment and pressure on margins."

The Economic Survey 2025-26, released on 29 January 2026, highlighted that housing loans as a share of gross domestic product (GDP) rose to 11% in FY25 from 8% in FY15. It credited demand-side measures, such as interest subvention under PMAY (Urban), the Affordable Housing Fund, lower interest rates, and streamlined credit processes, for improving access to housing finance.

Urban initiatives like the Smart Cities Mission and the Urban Infrastructure Development Fund (UIDF) have also supported housing demand in tier-II and tier-III cities.