Private equity major EQT has acquired IndoStar Home Finance, a fully-owned subsidiary of IndoStar Capital Finance, for Rs 1,750 crore.
Moneycontrol had reported that EQT was one of the front runners in the race to acquire IndoStar Home Finance.
The deal is subject to regulatory approvals and shareholders' consent. The board of IndoStar Home Finance has also given its nod to an investment of Rs 500 crore by EQT upon closing of this transaction.
The deal will help IndoStar Capital to focus on its core strengths of vehicle financing and small business loans.
"We are excited to embark on this new journey with EQT,
who shares our vision and whose partnership will significantly help advance our mission of delivering affordable housing finance solutions across India. We extend our thanks to IndoStar and its promoters for their unwavering support and commitment throughout the years," Shreejit Menon, CEO of IndoStar Home Finance, said.
"Indostar Home Finance has established itself as a leading player in this segment and is well-positioned for continued growth. We are impressed by its market-leading position in South India and strong underwriting capabilities. We see significant potential to expand Indostar’s presence across India and drive its digital transformation. EQT looks forward to supporting the company in its next phase of growth,” Hemant Sharma, Managing Director in the EQT Private Capital Asia advisory team, said.
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