Aditya Birla Housing Finance Ltd (ABHFL) has raised Rs 2,750 crore by allotting a 14.29 percent stake to Indriya Ltd, an entity linked to private equity firm Advent International. This transaction ends ABHFL's status as a wholly-owned subsidiary of Aditya Birla Capital, which now retains 85.505 percent ownership. The move injects significant capital into the housing finance sector at a time when lenders seek funds to expand amid rising demand for affordable homes.
Details of the Preferential Allotment
ABHFL's board approved the issuance of 12.32 crore equity shares to Indriya Ltd at Rs 223.12 each on April 17, through a private placement. This values the stake at precisely Rs 2,750 crore and positions Indriya as a key minority shareholder with 14.285 percent of the paid-up equity capital. Aditya Birla Capital disclosed the development in a regulatory filing to the stock exchanges, confirming the shift in ownership structure.
Financial Snapshot and Market Context
For FY 2024-25, ABHFL reported revenue of Rs 2,655.18 crore and net worth of Rs 3,783.06 crore, reflecting steady growth in a competitive housing finance landscape. Shares of parent company Aditya Birla Capital traded at Rs 339.05 on the BSE, marking a 0.25 percent gain from the prior close. Housing finance companies like ABHFL play a vital role in channeling funds to underserved segments, including salaried individuals and self-employed borrowers in tier-2 and tier-3 cities.
Strategic Implications for Growth
Advent International's entry brings not only capital but also private equity expertise in scaling financial services firms. Such infusions enable ABHFL to bolster its loan book, enhance technology platforms, and reach more customers in India's expanding affordable housing market. With the government pushing initiatives like Pradhan Mantri Awas Yojana, this funding positions ABHFL to capture a larger share of the Rs 10 lakh crore-plus housing finance opportunity, while maintaining strong promoter control.