Blackstone will infuse Rs 800 crore in fresh equity in Aadhar Housing Finance, which will double its net worth and reduce its debt-equity ratio by half, the private equity major said while announcing the acquisition of the affordable housing finance company Sunday.
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 will double the company’s net worth and reduce its debt to equity ratio by roughly half.’’
“We are proud to support government’s ‘Housing for All’ mission and provide capital and much-needed confidence to the HFC/NBFC sector,” Dixit added.
Blackstone on Sunday announced that private equity funds managed by the firm have entered into a definitive agreement to acquire the entire stake in Aadhar Housing Finance Limited (Aadhar) held by the existing controlling shareholders.
Aadhar is India’s largest independent affordable housing finance company with a network of 316 branches across 19 states and an AUM of approximately Rs 10,000 crore ($1.4 billion) which comprises 100 per cent secured lending to retail customers with an average loan ticket size of less than Rs 10 lakh.
Deo Shankar Tripathi, managing director and CEO at Aadhar, said: “The entire management team is excited to partner with Blackstone, the world’s largest alternative asset manager with AUM of $472 billion."
The transaction is expected to close later this year, subject to customary closing conditions.
Aadhar Housing Finance Limited (Aadhar) is one of the largest housing finance companies in India servicing the home financing needs of the low-income segment. Established in 1990 as Vysya Housing Finance Limited, Aadhar has a long history. Currently, its 316 branches across 19 states help to reach more than 90 per cent of the country’s low-income population and provide credit solutions that make home-ownership accessible to everyone.
"Our asset management businesses, with approximately $472 billion in AUM, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis," said Blackstone in a statement.
Blackstone has been active in India since 2006 and has committed $9.8 billion of investments in India through private equity and real estate.