Blackstone has recently acquired majority stake of around 97.7% stake in Aadhar Housing Finance Limited, including the rest of the stake is held by the existing controlling shareholders, Wadhawan Global Capital and Dewan Housing Finance. As part of the acquisition deal, Blackstone has also arrange a huge capital of Rs 8000 million primary equity requirement into Aadhar to fund the company and give fresh blood for future growth.
Aadhar is India’s largest independent affordable housing finance company with a network of 316 branches across 20 states and union territories and an AUM of Rs 100 billion which comprises 100% secured lending to retail customers with an average loan ticket size of less than Rs 1 million.
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Amit Dixit, head of India private equity and senior MD 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 expect the rating agencies and company’s lenders to welcome the ownership transition to a long term, well capitalized and patient investor in Blackstone. We plan to take the baton forward, back the management team, and fulfill their ambition of becoming the #1 company in the sector on all dimensions.”
Dixit also said he supports and filly backs the government campaign, ‘Housing for All’ and wants to provide capital and much needed confidence to the Non-banking Financial Company (NBFC) and Home Finance Company (HFC) sector.
Kapil Wadhawan, chairman of WGC, said: “Aadhar has thrived phenomenally, emerging as one of the largest and most trusted entities in the affordable housing segment. Aadhar has consistently committed to the integrated aim of creating better products and services for its customers. We sincerely wish all the success to the housing finance firm for its new journey as a company backed by Blackstone, the world’s largest alternative asset manager.”
Deo Shankar Tripathi, MD 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 $512 billion. Blackstone’s ownership and the upfront capital infusion have been perceived very positively by all stakeholders of the company. This investment is a testament to the dedication of our outstanding employees who have built this 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.”
Aadhar is India’s largest independent affordable housing finance company with a network of 316 branches across 20 states.
Blackstone has been betting big on Indian real estate sector since 2006 and has committed $10.4 billion investments in India through private equity, real estate, and tactical opportunities. The company’s asset management businesses involves investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets, and secondary funds.
Aadhar said it has a reach of more than 90 percent of the country’s low-income population and provides credit solutions that make home ownership more reliable and easily available.