EQT Acquires Indostar Home Finance for Rs 1750 Crore, Eyes Expansion in Affordable Housing
Private equity firm EQT acquires 100% stake in Indostar Home Finance for Rs 1,750 crore, eyes expansion in affordable housing segment
EqtIndostar Home FinanceAffordable HousingHousing Finance MarketIndiaReal Estate NewsSep 20, 2024
Founded in 2017, Indostar Home Finance provides affordable mortgages to retail customers in tier 2 to tier 4 cities in India and has supported over 39,000 low-income homeowners and small businesses. The company has rapidly scaled to more than Rs 2,400 crore in assets under management, achieving a 32% compounded annual growth in the last three years.
Indostar Home Finance has a network of more than 130 branches spread across nine states and employs over 1,000 people. The MMG fund will invest Rs 500 crore of primary capital in Indostar Home Finance to support its next phase of growth.
EQT aims to expand the company's geographic footprint and accelerate its digital transformation journey by leveraging EQT's in-house digitalization expertise, network of seasoned industry advisors, and expertise in go-to-market strategies.
According to an estimate, the housing finance market currently stands at more than Rs 30 lakh crore. The affordable segment has recorded strong growth driven by government support, rising affordability, and urbanization. However, there remains a significant shortage of housing in the country, with India's mortgage to GDP ratio at 12.3% compared to more than 60% for developed countries like the USA and UK.
Frequently Asked Questions
What is the value of the deal between EQT and Indostar Home Finance?
The deal is valued at Rs 1,750 crore (USD 210 million)
What is the current size of the housing finance market in India?
The housing finance market currently stands at more than Rs 30 lakh crore
What is the mortgage to GDP ratio in India compared to developed countries?
India's mortgage to GDP ratio is at 12.3% compared to more than 60% for developed countries like the USA and UK
How many branches does Indostar Home Finance have across India?
Indostar Home Finance has a network of more than 130 branches spread across nine states
How much primary capital will the MMG fund invest in Indostar Home Finance?
The MMG fund will invest Rs 500 crore of primary capital in Indostar Home Finance
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