Blackstone (NYSE:BX) today announced that private equity funds managed by Blackstone (“Blackstone”) have acquired a 97.7% stake in Aadhar Housing Finance Limited (“Aadhar”), including the entire stake held by the existing controlling shareholders, Wadhawan Global Capital Limited (“WGC”) and Dewan Housing Finance Limited. As part of the transaction, Blackstone has also infused INR 8,000 million primary equity capital into Aadhar to fund the company for future growth.
Aadhar is India’s largest independent affordable housing finance company with a network of 316 branches across 20 states and union territories and an AUM of INR 100 billion (~USD 1.4 billion) which comprises 100% secured lending to retail customers with an average loan ticket size of less than INR 1 million (~USD 14,000).
Mr. Amit Dixit, Head of India Private Equity and Senior Managing Director at Blackstone, said:
“Aadhar has the strongest origination capability in the sector with 316 branches. Our primary capital infusion of INR 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. We are proud to support the Government’s ‘Housing for All’ mission and provide capital and much needed confidence to the HFC/NBFC sector. Finally, we want to thank the current owners for building a great company with a strong management team and robust credit underwriting processes. We plan to take the baton forward, back the management team, and fulfill their ambition of becoming the #1 company in the sector on all dimensions.”
Mr. Kapil Wadhawan, Chairman of WGC, said:
“Aadhar has thrived phenomenally, emerging as one of the largest and most trusted entities in the affordable housing segment. Aadhar has consistently committed to the integrated aim of creating better products and services for its customers. We sincerely wish all the success to the housing finance firm for its new journey as a company backed by Blackstone, the world’s largest alternative asset manager.”
Mr. Deo Shankar Tripathi, Managing Director and CEO at Aadhar, said:
“The entire management team is excited to partner with Blackstone, the world’s largest alternative asset manager with AUM of USD 512 billion. Blackstone’s ownership and the upfront capital infusion have been perceived very positively by all stakeholders of the Company. This investment is a testament to the dedication of our outstanding employees who have built this Company. Our focus will remain to provide home ownership to every Indian, providing them accessible, easy and quick housing finance services. With the support of our new partners, we look forward to extending our services to our customers, enabling them to achieve their dreams of owning a home.”
