Lodha family arm to launch VC fund, housing finance firm

Lodha Ventures, the investment arm of the Mumbai-based property developer Mangal Prabhat Lodha family, is planning to launch a venture capital fund and a housing finance company soon, according to a source in the know.

Lodha Ventures is headed by Abhinandan Lodha, the younger son of Mangal Prabhat Lodha, who is also a member of legislative assembly in Maharashtra.

According to sources, Lodha Ventures is planning to launch a fund of $100 million, orRs 640 crore, to invest in early-stage consumption-led companies. “It will do three to four large deals. The plan is to give management support and take it to the next level,” a source said. 

The fund would explore opportunities in ready-to-eat, fitness, among others, sources said.

When contacted, Abhinandan Lodha confirmed the plans but declined to give details.

“They have a housing finance licence and are looking to launch the company in July,” said the source, adding that the promoters would invest aboutRs 300 crore in the business.

The housing finance company will give loans in the range ofRs 10-15 lakh and focus on Gujarat, Rajasthan, and rural parts of Maharashtra.

According to the National Housing Bank, about 75 housing finance companies operate in the country and those which have recently announced foraying into the segment include the Ajay Piramal group and JM Financial.

HDFC, LIC Housing Finance, and Indiabulls Housing Finance are the biggest ones in the housing finance segment. In public equity deals, Lodha Ventures recently bought 12 per cent in Pune-based Vascon Engineers, which is one of the largest EPC (engineering, procurement and construction) contractors in real estate.

“We want to capture the affordable housing pie with this stake purchase. They have the scale to execute mass-scale housing projects by governments and private companies,” Lodha had said earlier. Lodha also bought a one per cent stake in Hyderabad-based Premier Explosives, which is in defence production. According to sources, Lodha Ventures will explore more such deals.

Ventures speak

— Lodha Ventures is helmed by Abhinandan, the son of Mangal Prabhat Lodha (pictured)

— The company is planning to launch a fund of $100 million orRs 640 crore to invest in early stage consumption-led companies
 

— Lodha has a housing finance licence and looking to launch the company in July

— Promoters will invest aboutRs 300 crore in the housing finance business
 

— The housing finance company will give loans in the range ofRs 10 lakh toRs 15 lakh and will focus on Gujarat, Rajasthan and rural parts of Maharashtra
 

— Lodha also bought 1% stake in  Premier Explosives, which is into defence production