Cholamandalam looking to tap into housing sector with a major stake in Aptus

Financial services firm Cholamandalam is eyeing a majority stake in housing finance company Aptus Value Housing, CNBC-TV18 has reported.

The talks began after Aptus Promoter and Managing Director M Anandan failed to pick a successor in the family to run the business, CNBC-TV18 reported sources as saying.

Being a former employee of Cholamandalam, Anandan was likely to go for the deal as he is familiar with the ethics and process of Cholamandalam, which were similar to those of Aptus, sources said.

None of the parties confirmed stake-sale talks, the report said.

Aptus boasts an AUM of Rs 6,307 crore. During 9MFY23, it disbursed loans worth Rs 1,734 crore, up 55 percent from the same period in FY22.

During the period, its gross non-performing assets improved to 1.44 percent from 1.53 percent on year. This compares with Cholmandalam’s 5.4 percent gross NPA.

Aptus’ ROA is at about 8.5 percent and ROE is at 16 percent, making its return ratios one of the best in the market and much better than that of Cholamandalam, CNBC-TV18 said.