MUMBAI: IIFL Home Finance, a subsidiary of finance, has entered into definitive agreements for raising Rs 2,200 crore of primary capital for a 20% stake from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
ADIA is the Emirate of Abu Dhabi’s sovereign wealth fund. The deal completion is subject to regulatory approvals. This would be one of the largest equity investments in the affordable housing finance segment in India by a financial investor. IIFL Home Finance Limited proposes to use the additional capital to continue its granular expansion strategy into new markets to address the significant and growing demand for housing loans.
“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,” said Nirmal Jain, Founder, IIFL Group.
“The 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”, said Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA.
Avendus Capital & IIFL Securities were the financial advisors to IIFL Home Finance for the transaction.
IIFL Home Finance had assets under management of Rs 23,617 crore as of March 31, 2022. The company offers small-ticket housing loans, loans against property and construction finance.