Carlyle to pick controlling stake in Nido Home Finance for Rs 2,100 cr

New Delhi, Feb 10 (PTI) Edelweiss Financial Services Ltd and Carlyle Group on Tuesday announced that the US-based investment firm will acquire a strategic majority stake in Nido Home Finance, a wholly-owned subsidiary of Edelweiss.

As part of the transaction, investment funds affiliated with Carlyle Asia Partners (CAP) will invest Rs 2,100 crore (approximately USD 230 million), which includes acquiring a 45 per cent stake in Nido from Edelweiss through a secondary purchase and a primary equity capital infusion of Rs 1,500 crore (approximately USD 165 million) in the housing finance firm.

Aditya Puri, Senior Advisor to Carlyle in Asia, and former CEO and MD of HDFC Bank, will also participate as an investor, underscoring the strategic importance of the investment, Edelweiss Financial Services Ltd said in a statement.

Established in 2010, Nido is one of India’s leading housing finance companies, providing home loan solutions to customers across the affordable housing and mass-market segments, it said.

With a robust presence across the country, Nido operates a large network of branches, serving over 800 talukas (sub-districts) in India, and currently manages an AUM of Rs 4,804 crore, it said.

For Carlyle, the investment reflects its continued commitment to supporting India’s high- growth housing finance sector and builds on its more than two decades of deep expertise, operating capabilities and strong track record investing in India’s financial services sector, including in housing finance businesses such as PNB Housing Finance Limited (PNBHF) and Housing Development Finance Corporation (HDFC), it said.

The transaction seeks to create a win-win opportunity for all stakeholders by bringing additional capital and operational expertise to better serve the affordable housing segment, predominantly in the rural and semi-urban markets in India, a key priority for the Indian government, it said.

Housing finance is an important pillar of India’s growth, underpinned by structural demand, policy support, and a deepening formal credit ecosystem, it said.

For Edelweiss, the partnership seeks to advance its objective of creating and unlocking value in its businesses, while reinforcing Nido’s growth momentum through the infusion of fresh growth capital, it said.

Commenting on the development, Rashesh Shah, Chairman & MD, Edelweiss, said, “The investment by Carlyle in Nido is a key milestone and brings in a high-quality, long-term partner to accelerate Nido’s next phase of growth." At a time when India’s housing finance sector is witnessing strong structural demand, supported by rising affordability and deeper access to formal credit, Nido is well-placed to participate meaningfully in this opportunity, he said.

Carlyle Partner and Asia Financial Services Sector Lead Sunil Kaul said, "We are excited to build on our extensive experience in financial services and housing finance to help Nido scale its operations and serve the expanding needs of affordable housing segments in the rural and semi-urban markets." PTI DP DP MR