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
Related News Articles
Jammu and Kashmir RERA Cracks Down on Non-Compliance in Real Estate Sector
The Jammu and Kashmir Real Estate Regulatory Authority (J&K RERA) is taking a significant step towards enforcing transparency and accountability in the region's real estate sector.
Indian Real Estate Sees Bull Run: Housing Prices Rise 12% Annually in Q2 2024
Positive homebuyer sentiment and steady demand have kept the momentum strong in the residential market across major Indian cities, with Delhi-NCR witnessing the highest price rise of 30%
Sunteck Realty Shines with Top GRESB Score in Global Real Estate Sustainability
Sunteck Realty Limited, a leading luxury real estate developer based in Mumbai, has achieved a commendable GRESB score of 96 for the fiscal year 2024. This score underscores their commitment to ESG principles and marks them as a Sector Leader in global re
MahaRERA Urges Pune Collector to Expedite Recovery Warrants Against Errant Builders
Pune: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has instructed Pune collector Jitendra Dudi to expedite the issuance of long-delayed recovery warrants against errant builders in the region.
My Home Upper Kharadi Sees Over 80 Bookings on Launch Day in Pune
Pune, Maharashtra - My Home Upper Kharadi, a new residential project in Kharadi, recorded an impressive 80+ bookings on its launch day, marking a significant success in the Pune real estate market.
The House of Abhinandan Lodha Expands with Land Acquisitions in 13 New Cities
The House of Abhinandan Lodha, a prominent real estate developer, is set to acquire land in 13 new cities, signaling a significant expansion in its portfolio and a strategic move to tap into emerging markets.