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Private equity major Advent International will invest ₹2,750 crore of growth capital into Aditya Birla Housing Finance, following approvals by the boards of Aditya Birla Housing Finance and its parent Aditya Birla Capital, the company said on Tuesday.
CNBC-TV18 had first reported on February 2 that Advent was in advanced discussions to invest about $300 million into Aditya Birla Housing Finance, in what was expected to be a primary capital infusion. The deal has now been formally confirmed.
According to the announcement, the transaction will be structured as a primary capital infusion of ₹2,750 crore into ABHFL by Indriya Limited, one of the entities of Advent International. Aditya Birla Housing Finance is a wholly owned subsidiary of Aditya Birla Capital.
Completion of the transaction is subject to shareholder approval, regulatory clearances and other customary conditions, the company said.
Commenting on the development, Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said India’s housing sector is at a “defining inflection point,” driven by policy initiatives such as the Pradhan Mantri Awas Yojana, a sustained push for affordable urban housing and expanding urban and rural infrastructure.
He said these reforms have broadened housing demand across income segments and geographies, adding that structured, transparent and accessible housing finance will be critical to unlocking the next phase of growth.
“The proposed capital infusion will strengthen ABHFL’s financial foundation, enable deeper market penetration, and enhance its ability to shape India’s inclusive and sustainable housing finance ecosystem,” Birla said.
The investment marks one of the largest primary capital infusions in India’s housing finance space, providing Aditya Birla Housing Finance with significant capital to scale its loan book, strengthen capital adequacy and deepen its presence in affordable and mid-income housing, at a time when housing finance companies are focused on building buffers to support growth through credit cycles.
CNBC-TV18 had first reported on February 2 that Advent was in advanced discussions to invest about $300 million into Aditya Birla Housing Finance, in what was expected to be a primary capital infusion. The deal has now been formally confirmed.
According to the announcement, the transaction will be structured as a primary capital infusion of ₹2,750 crore into ABHFL by Indriya Limited, one of the entities of Advent International. Aditya Birla Housing Finance is a wholly owned subsidiary of Aditya Birla Capital.
Completion of the transaction is subject to shareholder approval, regulatory clearances and other customary conditions, the company said.
Commenting on the development, Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said India’s housing sector is at a “defining inflection point,” driven by policy initiatives such as the Pradhan Mantri Awas Yojana, a sustained push for affordable urban housing and expanding urban and rural infrastructure.
He said these reforms have broadened housing demand across income segments and geographies, adding that structured, transparent and accessible housing finance will be critical to unlocking the next phase of growth.
“The proposed capital infusion will strengthen ABHFL’s financial foundation, enable deeper market penetration, and enhance its ability to shape India’s inclusive and sustainable housing finance ecosystem,” Birla said.
The investment marks one of the largest primary capital infusions in India’s housing finance space, providing Aditya Birla Housing Finance with significant capital to scale its loan book, strengthen capital adequacy and deepen its presence in affordable and mid-income housing, at a time when housing finance companies are focused on building buffers to support growth through credit cycles.
