MUMBAI: Capital India Finance Ltd (CIFL), an MSME focused small-cap NBFC has sold its housing finance subsidiary Capital India Home Loans Limited (CIHL) to Weaver Services Private Limited a company for Rs 267 crore according to the filing by the company sent to the stock exchanges. The company is backed by former HDFC employees .
To finance this acquisition, WEAVER is raising capital from leading private equity funds including Gaja Capital and Lok Capital to secure up to Rs 800 crore in funding according to a release by the company.
CIFL is a new age player in the affordable housing segment. The transaction is part of CIFL’s strategic realignment to focus on its core businesses, the company said in a communication to the exchanges.
The transaction is subject to regulatory approval.
“The capital freed up with this sale, will allow Capital India to grow on the back of strong equity capitalization and improving operating metrics.” said Pinank Jayant Shah, chief executive officer, Capital India Finance Limited.
Upon securing the necessary regulatory approvals and completion of the acquisition, WEAVER will launch a suite of innovative home loan products tailored for citizens of BHARAT.
“The primary focus will be on empowering self-employed individuals in the unorganized sector, particularly in Tier 2 and Tier 3 towns. WEAVER is committed to championing financial inclusion, with a special emphasis on catering to women borrowers who often face barriers in accessing traditional financial services” a release by the company said.
WEAVER consists of a group of finance professionals including Satrajit Bhattacharya, who previously led the Investments and M&A function at HDFC Limited, and other former HDFC executives.
Source Homevior.in
