CashNews.co
Mumbai: Weaver Services Private Ltd, an affordable housing finance company founded by former employees of HDFC Ltd, on Wednesday announced the acquisition of Delhi-based Capital India Home Loans Pvt Ltd (CIHL) for ₹267 crore.
Weaver Services is raising up to ₹800 crore from private equity players like Gaja Capital and Lok Capital to fund this acquisition as well as to grow its lending business, the company said in a statement.
The acquisition, however, is yet to receive regulatory approval.
Mint had reported on 31 July that Weaver Services, set up by Satrajit Bhattacharya, former head of investments and M&A at HDFC, and other former HDFC executives, is looking to acquire a mid-sized housing finance company.
Following the acquisition, Bhattacharya will assume a non-executive role at Weaver Services.
“The capital will be used for both acquisition finance and growth. But we will also look at further acquisitions in the same space, for which we will look at raising more capital,” Bhattacharya told Mint.
Home loan products for women and self-employed
Weaver Services will focus on launching innovative home loan products for women borrowers and self-employed individuals in the unorganised sector from the Tier 2 and Tier 3 towns.
CIHL is a subsidiary of Capital India Finance Ltd (CIFL), a non-deposit taking non-banking financial company, which is focussed on loan against property. CIFL is part of Capital India Corp Pvt Ltd, promoted by Sumit K. Narvar, who is also the chairman of Noida-based real estate company Trident Realty.
Capital India Finance is a core investment company (CIC) which also includes RemitX, a tech-enabled cross-border remittance player, and RapiPay, a fintech payment and money-transfer start-up, Credenc, an education loan fintech and Kuants, an investment platform.
CIHL’s standalone loan portfolio stood at ₹388.68 crore as on 31 March 2024, higher than ₹348.06 crore a year prior. Secured loans accounted for around 94% of the portfolio of CIHL on 31 March 2024. The housing finance company had a network of 31 branches across 10 states.
Since 7 October when they began rising, shares of Capital India Finance have surged 82% to close at ₹266.95 apiece on Wednesday on the BSE.