IIFL buys majority stake in mortgage lender; KKR mulls buying IL&FS road projects
Photo Credit: Shah Junaid/VCCircle

IIFL India Private Equity Fund has picked up a stake of around 75% in Kadaieshwar Homefin Pvt. Ltd for about Rs 100 crore ($13.5 million), a media report said on Monday.

The Economic Times reported, citing two people aware of the development it didn't name, that Kadaieshwar may launch operations in January.

Kadaieshwar had filed an application with the National Housing Bank in September for grant of a certificate of registration, according to the regulator's website.

The company was founded by C Ilango, former managing director at mortgage lender CanFin Homes.

IIFL India Private Equity Fund was floated by IIFL Asset Management Ltd in May. IIFL is looking to raise around $200-250 million for this fund.

IIFL India Private Equity Fund is a close-ended SEBI-registered alternative investment fund. It will focus on professional entrepreneurs in fast-growing sectors like financial services, consumer, healthcare and technology.

Meanwhile, Mint reported that private equity giant KKR is evaluating some road projects of cash-strapped Infrastructure Leasing & Financial Services Ltd.

Citing two people aware of the development, the report said KKR is looking to buy infrastructure projects in India.

In September, KKR had closed its third global infrastructure fund at $7.4 billion. The fund will invest mostly in countries that are part of the Organisation for Economic Co-operation and Development.

KKR has appointed Hardik Shah, former senior vice president at Brookfield Asset Management, for its infrastructure team in India, the report said.

KKR is likely to invest at least $1 billion in India from its third global infrastructure fund, according to the report.

IL&FS Transportation Networks Ltd, a listed unit of IL&FS, has 28 road projects under the build-operate-transfer model. Of these, 21 are operational and the remaining under construction.

Over the past few weeks, media reports have said that Singapore-based Cube Highways and Italy’s Benetton family-controlled infrastructure group Atlantia were also in talks to buy some of the road projects of IL&FS.

In a separate development, Thrissur-based ESAF Small Finance Bank has raised Rs 464 crore ($63 million at current exchange rates) through a private placement of shares, the lender said in a statement.

PNB MetLife India Insurance Co. Ltd and ESAF Multi-State Co-operative picked up a 4.99% stake each in the lender while Bajaj Allianz Life Insurance Co. Ltd and ICICI Lombard General Insurance Co. Ltd bought a stake of 4.08% and 1.45%, respectively. Seven other investors took part in the private placement.

K Paul Thomas, managing director and chief executive at ESAF, said the lender will use the money for general corporate purposes, capital management and to support growth.

ESAF commenced its banking operations in March 2017. It has 422 banking outlets across 11 states. It disbursed Rs 4,619 crore in loans in the financial year ended March 2018.

In another report, Mint said Ostro Energy's former CEO Ranjit Gupta and former COO Murali Subramanian are in talks to raise $100 million to set up a renewable energy platform. 

Subramanian confirmed the development to the financial daily.

In April, ReNew Power had acquired Ostro Energy from private equity firm Actis. The deal’s enterprise value (including debt) was about Rs 10,000 crore.

Separately, The Economic Times reported that multi-stage investment firm Norwest Venture Partners has picked up a stake of about 15% in Chennai-based non-banking financial company Veritas Finance for $30 million (Rs 200 crore).

Veritas was founded in 2015 by D Arulmany. It offers short-term loans for working capital, medium-term loans for business expansion and long-term loans for asset creation to small and medium enterprises.

The company has a loan book of Rs 496 crore and operates through 125 branches, according to its website.

In December 2017, Veritas had raised Rs 120 crore in a Series B round led by CDC Group. Existing investors Lok Capital and the husband-wife duo of Surendra Pai and Savita Pai also participated in this round.

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