Abu Dhabi Investment Authority to buy 20 pc stakes in IIFL Home Finance
Jun 10, 2022
Mumbai (Maharashtra) [India], June 10 : A wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA) has signed a definitive agreement to buy 20 per cent stake in IIFL Home Finance Limited for Rs 2,200 crore.
This would be one of the largest equity investments in the affordable housing finance segment in India by a financial investor. Backed by a technology backbone enabling 100 per cent digital onboarding for home loans, robust credit appraisal and collection systems, 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, IIFL Finance Limited said in a statement.
IIFL Home Finance Limited is a wholly-owned subsidiary of non-banking financial company IIFL Finance Limited.
"We are delighted to partner with ADIA who bring to the table long-term commitment and rich experience of supporting growing businesses. 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," Nirmal Jain, Founder, IIFL Group, said in the statement.
Established in 2006 as a wholly-owned subsidiary of IIFL Finance, IIFL Home Finance has created assets under management of Rs 23,617 crore as of March 31, 2022, with 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 company offers small-ticket housing loans, loans against property and construction finance. It also actively supports the construction of green affordable buildings in the country in collaboration with housing developers and other experts through its proprietary 'Kutumb' platform in an effort to limit the carbon footprint and provide cost-efficient structures.
"IIFL Home Finance has already established itself as one of India's leading technology-enabled mortgage lenders. This 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.
