An entire branch of Abu Dhabi Investment Authority (ADIA) will invest Rs 2,200 crore for a 20 percent stake in IIFL Home Finance. “This would be one of the largest equity investments in the affordable housing financing segment in India by a financial investor,” said IIFL Finance.
IIFL Home Finance is a subsidiary of IIFL Finance. “The deal is subject to regulatory approval,” the non-bank lender added.
The Affordable Housing Finance Company also said it plans to “use the additional capital to continue its granular expansion strategy into new markets to address the significant and growing demand for home loans.”
Nirmal Jain, founder of IIFL Group, said: “We are delighted to partner with ADIA, which brings to the table long-standing commitment and rich experience in 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 placed it is to continue targeting the large, resilient home financing market.”
Shares of IIFL Finance rose a whopping 8.42 percent, reaching an intraday high of Rs 356.70.
As of March 31, 2022, the residential lending arm of IIFL Finance has assets under management of Rs 23,617 crore.
Monu Ratra, CEO, IIFL Home Finance said: “IIFL Home Finance has built a strong foundation and is at a turning point as it adopts new strategies such as co-loans, seeks more granular products and expands its reach across Tier II and Tier III Regions.”
ADIA is a globally diversified investment fund that invests funds prudently on behalf of the Government of Abu Dhabi.