The Carlyle Group is set to acquire a strategic majority stake in Nido Home Finance Limited (Nido), a wholly owned subsidiary of Edelweiss, per an announcement.
The funding will be routed through investment funds affiliated with the private equity (PE) firm.
As part of the transaction, Carlyle Asia Partners will invest Rs 2,100 crore (approximately $230 million) in the company through a mix of primary and secondary investments.
Under the secondary component, Carlyle will acquire a 45% stake in Nido from Edelweiss, alongside a primary equity capital infusion of Rs 1,500 crore (approximately $165 million) into the company.
Founded in 2010, Nido is a housing finance company offering home loan solutions across the affordable housing and mass-market segments.
The company has built a strong pan-India presence through an extensive branch network, and currently manages assets under management of Rs 4,804 crore (approximately $530 million).
“At a time when India’s housing finance sector is witnessing strong structural demand, supported by rising affordability and deeper access to formal credit, Nido is well-placed to participate meaningfully in this opportunity,” said Rashesh Shah, Chairman & MD, Edelweiss, in a media statement.
Edelweiss is a diversified financial services group with seven independently managed businesses, including alternative asset management, mutual funds, asset reconstruction, NBFCs, housing finance, general insurance and life insurance.
“Housing remains a critical national priority for India, and we have strong conviction in the growth potential of the housing finance industry,” said Sunil Kaul, Partner and Asia Financial Services Sector Lead at Carlyle.
The transaction is subject to approvals from the Reserve Bank of India, the National Housing Bank, and the Competition Commission of India, as well as other customary conditions.
