Private equity firm KKR and Co. is most likely to acquire a stake in Aadhar Housing Finance Ltd, a unit of Wadhawan Global Capital (WGC) which also controls Dewan Housing Finance Co. Ltd (DHFL).
According to the sources, the discussion on acquisition is at an exploratory stage and may result in KKR taking direct control of the affordable housing financier.
An initial public offering (IPO) or a strategic stake sale of Aadhar is on the agenda for some time now to “unlock value”.
“KKR will bring in long-term capital which is crucial for Aadhar Housing Finance’s growth” said the first person cited above. “KKR may look to acquire the company at a discount to its present price to book value,” said the person aware about deal.
Aadhar Housing was established in 2011. Its operation is spread across 13 states, including Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Orissa, Jharkhand and Bihar. It offers loans up to Rs 25 lakh to borrowers with income levels between Rs 60,000 and Rs 6 lakh per annum. It reported assets under management of nearly Rs 7,966 crore as on 31 March.