Mumbai, February 3, 2019 - Blackstone (NYSE:BX) today announced that private equity funds managed by Blackstone ("Blackstone") have entered into a definitive agreement to acquire the entire stake in Aadhar Housing Finance Limited (“Aadhar”) held by the existing controlling shareholders. As part of the transaction, Blackstone will simultaneously infuse 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 19 states and an AUM of approximately 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.
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 will double the company’s Net Worth and reduce 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 process. 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. 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 472 billion. Blackstone’s ownership and the upfront capital infusion will be 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. We look forward to take the Company further on its vision and growth plans.”
The transaction is expected to close later this year, subject to customary closing conditions.
About Aadhar Housing Finance Limited
Aadhar Housing Finance Limited (Aadhar) is one of the largest housing finance companies in India servicing the home financing needs of the low-income segment. Aadhar endeavours to empower underserved millions to own their first homes. Established in 1990 as Vysya Housing Finance Limited, Aadhar has a long history. Today, its 316 branches across 19 states help to reach more than 90% of the country’s low-income population and provide credit solutions that make home-ownership accessible to everyone.
Further information is available at www.aadharhousing.com
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with approximately USD 472 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on global basis.
Blackstone has been active in India since 2006 and has committed USD 9.8 billion of investments in India through private equity and real estate.
Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
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