PE firms, NBFCs submit bids for IFC-backed Aadhar Housing Finance: Report
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Four parties have submitted bids to acquire a controlling stake in Aadhar Housing Finance, according to a report in The Times of India.

Citing people aware of the development, the report said that the bidders include Baring Private Equity Asia; a consortium of ChrysCapital and Hero Fincorp; Delhi-based non-banking financial company DMI Finance; and a grouping of Indostar Capital and PE firm Everstone.

Aadhar Housing Finance is being valued at more than Rs 2,400 crore (around $330 million), the report added.

In May, VCCircle had reported that Aadhar was firming up plans for an initial public offering.

Aadhar, a subsidiary of financial services group Wadhawan Global Capital (WGC), provides home financing to lower- and middle-income segments. It counts International Finance Corporation (IFC) as one of its investors.

Wadhawan and Dewan Housing Finance Ltd (DHFL) own a controlling stake in Aadhar. Wadhawan Global Capital in turn owns 38% of DHFL and is the controlling lever for the group's financial businesses.

On Tuesday, DHFL said it would sell its entire stake in mutual fund business DHFL Pramerica to its US joint venture partner.

DHFL’s decision to sell its non-core business coincides with similar moves by several banks and NBFCs looking to sell non-core assets to boost their capital requirements..

As of 31 March 2018, Wadhawan Global held a 70% stake in Aadhar. IFC, the private-sector investment arm of the World Bank, holds a 16.91% stake in the mortgage lender.

Aadhar made loan disbursements of Rs 3,905 crore in the year through March 2018, up from Rs 2,338 crore in the previous year. Its total assets under management stood at Rs 7,966 crore as on 31 March 2018.

WGC had merged DHFL Vysya Housing Finance with Aadhar as part of a group restructuring exercise. The merger, announced in June 2016, concluded last year.

Aadhar is an established financial services brand in north, west and east India, while the merged entity DHFL Vysya has a strong foothold in the south.

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