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One of the leading NBFCs, IIFL Finance has bagged a mega deal on Thursday with Abu Dhabi Investment Authority (ADIA) to invest a massive ₹2,200 crore for the purchase of 20 stake in the wholly-owned subsidiary IIFL Home Finance. ADIA will invest in IIFL Home Finance through its wholly-owned subsidiary.
IIFL Home Finance established in 2006, is a wholly-owned subsidiary of IIFL Finance and has created assets under management to the tune of ₹23,617 crore. The company is one of the India’s largest affordable housing finance companies.
In its statement, IIFL Finance said this would be one of the largest equity investments in the affordable housing finance segment in India by a financial investor.
IIFL Home Finance has proposed to use the additional capital to continue its granular expansion strategy into new markets to address the significant and growing demand for housing loans.
Nirmal Jain, Founder, IIFL Group said, “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."
Avendus Capital and IIFL Securities were the financial advisors to IIFL Home Finance for this transaction.
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA said, "IIFL Home Finance has already established itself as one of India’s leading technology-enabled mortgage lenders. 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."
IIFL Home Finance offers small-ticket housing loans, loans against property, and construction finance.
Monu Ratra, CEO, of IIFL Home Finance, 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. We welcome our new partners and look forward to working with them in the next phase."
IIFL Home Finance currently has an active customer base of 168,000 across 16 states and 2 union territories with over 200 branches backed by over 3,200 employees.
The deal completion is subject to regulatory approvals.
On BSE, IIFL Finance shares closed at ₹329 apiece up 0.8%.
