IIFL Finance, one of the leading NBFCs, on Thursday inked a great deal with the Abu Dhabi Investment Authority (ADIA) to invest in a large scale. 2,200 crore for the purchase of 20 stake in 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 assets under management 23,617 crores. The company is one of the largest affordable housing finance companies in India.
IIFL Finance in its statement said that this will be one of the largest equity investments in affordable Accommodation Finance segment in India by a financial investor.
IIFL Home Finance proposes to utilize the additional capital to continue its massive expansion strategy in new markets to meet the significant and growing demand for housing loans.
Nirmal Jain, Founder, IIFL Group, said, “We are delighted to partner with ADIA, who bring long-term commitment and rich experience to support growing businesses. This investment will position IIFL Home Finance as one of India’s affordable housing loans. and how best 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, Private Equity Division at ADIA, said, “IIFL Home Finance has already established itself as one of India’s leading technology-enabled mortgage lenders. The investment is aimed at helping the company grow. The next step is to provide support as it meets critical demand in India’s large, under-served and rapidly growing affordable housing finance market.”
IIFL Home Finance offers small-ticket housing loans, loan against property and construction finance.
Monu Ratra, CEO, IIFL Home Finance said, “IIFL Home Finance has built a strong foundation and is at a turning point as it explores new strategies like co-lending, foraying into more granular products and expanding its reach in 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 completion of the deal is subject to regulatory approval.
Shares of IIFL Finance closed on BSE 329 each up 0.8%.