IIFL Home Finance picks 5% stake in RMBS Development Company

Stake Buy

IIFL Home Finance has bought a 5 percent "strategic stake" in RMBS Development Company Ltd for Rs 25 crore, the company said on March 28.

ICICI Bank, HDFC Bank and Bajaj Finance hold a 7 percent stake each in the company. Shriram Housing Finance, Aditya Birla Housing Finance, Hero Housing Finance and Grihum Housing Finance Limited have a 5 percent stake each in RMBS.

The major stake in the company is held by National Housing Bank (NHB) of 39 percent followed by LIC's 10 percent, the release added.

“The RMBS platform under the aegis of the NHB shall provide the much-wanted liability diversification and improvement of cost of funds for all mortgage players,” Monu Ratra, CEO and ED, IIFL Home Finance, said.

The consortium of lenders has pledged an investment of Rs 500 crore to revitalise the Residential Mortgage-Backed Securitisation (RMBS) market and unlock its potential for financing affordable housing, the release said.

IIFL Home Finance’s assets under management (AUM) grew 38 percent CAGR to Rs 32,937 crore as of nine months of current financial year.

In FY23-24, IIFL Home Finance secured funding of over $450 million from DFIs such as US International Development Finance Corporation (DFC), International Finance Corporation (IFC), and others to support affordable and green housing for low-income and economic weaker sections, the company said in a release.