Aditya Birla Housing Finance (ABHFL), a wholly owned subsidiary of Aditya Birla Capital (ABC) will receive a primary capital infusion of Rs 2,750 crore from Indriya, an entity of Advent International.
The transaction values Aditya Birla Housing Finance, the financial services arm of Aditya Birla Group, at Rs 19,250 crore on a post money basis.
Advent to hold 14.3% stake in Aditya Birla Housing Finance post transaction
Upon completion of the transaction, Aditya Birla Capital will hold about 85.7% and Advent will hold about 14.3% stake in Aditya Birla Housing Finance.
The completion of the transaction, however, is subject to approvals from shareholders, regulatory bodies, and other customary conditions, it said.
Advent investment to strengthen ABHFL’s growth push: Kumar Mangalam Birla
“The proposed capital infusion will strengthen ABHF’s financial foundation, enable deeper market penetration, and enhance its ability to shape India’s inclusive and sustainable housing finance ecosystem,” Aditya Birla group Chairman Kumar Mangalam Birla said.
Birla added that the housing sector is at a “defining inflection point”, driven by policy initiatives such as the Pradhan Mantri Awas Yojana, thrust on affordable urban housing, and the expanding reach of urban and rural infrastructure.
Advent’s managing partner Shweta Jalan said the mortgage market is benefiting from strong structural tailwinds, led by supportive government initiatives and a constructive regulatory framework, and ABHF has built a high-quality, trusted franchise with strong risk practices and governance standards.
“We have strong conviction in the leadership team and are delighted to support them as the company enters its next phase of growth,” Jalan added.
ABC’s Managing Director and Chief Executive Vishakha Mulye said, “With this proposed capital raise, we enter the next phase of expansion for our housing finance business with a clear focus on sustaining growth momentum and increasing market share.”
Aditya Birla Capital share price
The share price of Aditya Birla Capital closed in green rising 3.71% on Tuesday. The stock has gained 24.11% in past six months.