Blackstone buys majority stake in Aadhar Housing Finance for Rs 2,200 crore

As part of the transaction, Blackstone has also infused Rs 800 crore primary equity capital into Aadhar Housing Finance

Global investment firm Blackstone has bought a majority stake in Aadhar Housing that caters to the housing financing needs of low-income households, a statement said Tuesday.

Blackstone has bought 97.7 per cent stake in Aadhar for about Rs 2,200 crore, sources said.

Blackstone today announced that private equity funds managed by Blackstone have acquired a 97.7 per cent stake in Aadhar Housing Finance Ltd, including the entire stake held by existing controlling shareholders, Wadhawan Global Capital Limited (WGC) and Dewan Housing Finance Limited, it said in a release.

As part of the transaction, Blackstone has also infused Rs 800 crore primary equity capital into Aadhar to fund the company for future growth.

 

Aadhar, which has business interests across 20 states and union territories, has asset under management (AUM) of Rs 10,000 crore ($1.4 billion), and has average loan ticket size of less than Rs 10 lakh (less than $14,000).

"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," said Amit Dixit, Head of India Private Equity and Senior Managing Director at Blackstone.

Kapil Wadhawan, Chairman of WGC and CMD of DHFL said Aadhar has emerged as one of the largest and most trusted entities in the affordable housing segment and hoped the company will continue to give better services.

Deo Shankar Tripathi, Managing Director and CEO at Aadhar, said:"Blackstone's ownership and the upfront capital infusion have been perceived very positively by all stakeholders of the company."

The focus will remain to provide home ownership to every Indian, providing them accessible, easy and quick housing finance services, he said.

Blackstone, with its asset management of about USD 512 billion, has been present in India since 2006 and has committed USD 10.4 billion investment through private equity, real estate and tactical opportunities.