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Everstone-backed IndoStar ends takeover talks with ICICI Home Finance

29 November, 2017

Non-banking finance company IndoStar Capital Finance Ltd may have backed out of the talks to acquire ICICI Home Finance Company Ltd, a financial daily reported.

IndoStar Capital CEO R Sridhar told Mint that there was a “problem of alignment of objectives when it came to the acquisition of ICICI Home Finance”.

In July, IndoStar had started the discussions with ICICI Home Finance to acquire the wholly-owned subsidiary of private-sector lender ICICI Bank.

Back then, VCCircle had reported that the deal would involve IndoStar picking up a 70-75% stake along with its private equity backer Everstone Capital.

Meanwhile, in September, IndoStar had launched its retail mortgage finance business, IndoStar Home Finance, to grow its loan book from the ground up.

Private equity firms TPG, True North (formerly India Value Fund Advisors), and Baring PE Asia were also eyeing a majority stake in ICICI Home Finance. However, the negotiations ended following differences with the target company over valuation and management issues.

ICICI Home Finance had reported net profit of Rs 183 crore in the year ended 31 March 2017 against Rs 180 crore in the year-ago period.

Earlier this month, VCCircle had reported that IndoStar Capital Finance was looking to raise around Rs 1,300 crore ($200 million) through an initial public offering.

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Everstone-backed IndoStar ends takeover talks with ICICI Home Finance

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