Private equity funds managed by Blackstone have acquired a 97.7% stake in Aadhar Housing Finance Limited, including the entire stake held by the existing controlling shareholders, Wadhawan Global Capital Limited (WGC) and Dewan Housing Finance Limited (DHFL). As part of the transaction, Blackstone has also infused Rs 8,000 million primary equity capital into Aadhar, to fund the company for future growth.
Aadhar is an independent affordable housing finance company, with a network of 316 branches across 20 states and union territories and an AUM of Rs 100 billion (USD 1.4 billion), which comprises 100% secured lending to retail customers with an average loan ticket size of less than Rs 1 million (USD 14,000).
Speaking about the acquisition, Amit Dixit, head of India private equity and senior managing director at Blackstone, said: “Aadhar has the strongest origination capability in the sector, with 316 branches. Our primary capital infusion of Rs 8,000 million, has approximately doubled the company’s net worth and reduced its debt-to-equity ratio by roughly half. We are proud to support the government’s ‘Housing for All’ mission and provide capital and much-needed confidence to the HFC/NBFC sector.”
Kapil Wadhawan, chairman of WGC, expressed optimism that the housing finance firm, backed by Blackstone, the world’s largest alternative asset manager, would witness greater success. Deo Shankar Tripathi, managing director and CEO at Aadhar, added: “Blackstone’s ownership and the upfront capital infusion, have been perceived very positively by all stakeholders of the company. Our focus will remain to provide home ownership to every Indian, providing them accessible, easy and quick housing finance services. With the support of our new partners, we look forward to extending our services to our customers, enabling them to achieve their dreams of owning a home.”