MUMBAI, Feb 3 : Private equity major Advent International will invest Rs 2,750 crore to acquire 14.3 per cent stake in Aditya Birla Housing Finance (ABHF), both the entities announced on Tuesday.
ABHF is wholly-owned by Aditya Birla Capital (ABC), the listed financial services arm of the diversified Aditya Birla Group, and the fund infusion from Indriya, an Advent entity, is through a primary issuance of shares, as per an official statement.
The boards of ABC and ABHF have approved the proposal for the capital raise and completion of the transaction is subject to approvals from shareholders, regulatory bodies, and other customary conditions, it said.
The transaction values ABHF at Rs 19,250 crore on a post money basis, and ABC will hold 85.7 per cent in the company after the deal while Advent will hold about 14.3 per cent stake in ABHFL, the statement said.
“The proposed capital infusion will strengthen ABHF’s financial foundation, enable deeper market penetration, and enhance its ability to shape India’s inclusive and sustainable housing finance ecosystem,” Aditya Birla group Chairman Kumar Mangalam Birla said.
Birla added that the housing sector is at a “defining inflection point”, driven by policy initiatives such as the Pradhan Mantri Awas Yojana, thrust on affordable urban housing, and the expanding reach of urban and rural infrastructure.
Advent’s managing partner Shweta Jalan said the mortgage market is benefiting from strong structural tailwinds, led by supportive government initiatives and a constructive regulatory framework, and ABHF has built a high-quality, trusted franchise with strong risk practices and governance standards.
“We have strong conviction in the leadership team and are delighted to support them as the company enters its next phase of growth,” Jalan added.
ABC’s Managing Director and Chief Executive Vishakha Mulye said the company enters the next phase of its expansion post-capital raise and will be eyeing to increase its market share.
The company focuses on prime and affordable segments and also construction finance, Mulye said, adding that ABHF has a pan-India distribution courtesy an omnichannel sourcing network.
As per the statement, ABHF’s assets under management stood at Rs 42,204 crore as of December 31, 2025 and have witnessed a compounded annual growth of 48 per cent over the last three years.
It is among the top-three players in terms of incremental loan book growth, and had 0.54 per cent of its overall assets in the gross stage three category which are unpaid for over 90 days.
The ABC scrip was trading 5.72 per cent up at Rs 352.15 a piece on the BSE at 0928 hrs, as against a 2.78 per cent jump in the benchmark. (PTI)
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