International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, is planning to buy up to 20 per cent stake in Dewan Housing Finance Ltd (DHFL) promoted Avanse Financial Services Pvt Ltd (Avanse) for Rs 12.5 crore ($2.3 million).
Avanse is a specialised non-banking finance company (NBFC) focused towards providing education loans for higher education.
Avanse will be using the funds for establishing its education loan business catering to markets across India. It will leverage the existing infrastructure platform of DHFL, which is spread over 400 locations, with a strong presence in Andhra Pradesh, Karnataka, Maharashtra, Tamil Nadu and Delhi National Capital Region that accounts for a large chunk of the current market for education finance.
The investment from IFC is a part of Avanse’s $11.2 million fund raising plan.
DHFL, one of the top private sector housing finance companies, holds 48.5 per cent stake in Avanse. The balance 51.5 per cent stake is held by individuals and entities affiliated to the Wadhawan group, the promoter of DHFL.
DHFL is a public listed firm and counts among its shareholders Sequoia Capital and entities associated with managing sovereign wealth of Singapore government.
(Edited by Prem Udayabhanu) Leave Your Comment