Weaver Services is aiming to consolidate by FY27 the two housing finance companies - People Home Finance and Centrum Housing Finance – which it had recently acquired, managing director and chief executive officer Anil Kothuri told Moneycontrol on October 10.
“As of now, we own Capital India Home Loans. The Centrum Housing Finance acquisition depends on regulatory approvals, which we expect might take about six months. So, assuming control by April 1, 2026, we’ll then be operating around 130 branches. We expect the consolidation of both companies likely to happen in FY27,” Kothuri said in an interview. Weaver Services relaunched Capital India Home Loans as People Home Finance after completing the acquisition.
Weaver Services has also signed an agreement with Centrum Capital in August to buy out its stake in Centrum Housing Finance (CHFL), and the deal is contingent to the approval from Centrum's shareholders as well as regulatory and other third-party clearances.
Kothuri also said the company has set an internal target is to reach an AUM of Rs 10,000–12,000 crore before exploring an Initial Public Offering (IPO).
Edited excerpts:
In a crowded home finance market with so many players, how do you plan to differentiate your product offering?
The first differentiation is our target segment. While there are options available in theory, many in this segment struggle to actually get a home loan. So, ensuring availability itself is a differentiator.
Secondly, we aim to make the process convenient and seamless with minimal paperwork, fewer variables, and use of technology for data collection. If we can make the process smooth and transparent, customers will prefer to take a loan from us over others. That’s the core premise.
Could you elaborate on ticket size, what’s the typical ticket size, and how will you manage the LTV?
Our loan range will be between Rs 5 lakh and Rs 50 lakh, with the average around Rs 15 lakh.
At Rs 15 lakh, the EMI is about Rs 20,000–22,000, which corresponds to a monthly income of about Rs 50,000 or an annual income of Rs 6 lakh, typically a husband and wife with combined earnings.
Rs 6 lakh is a comfortable income in smaller towns, making home ownership viable.
In metros, people usually say, “I have Rs 20 lakh, so I can buy a Rs 1 crore home.” In smaller towns, the mindset is more conservative “I have Rs 15 lakh, I need Rs 15 lakh more, can someone help me with a loan?” That’s the difference we are catering to.
Are you focusing purely on housing or will you also offer Loan Against Property?
We will definitely do Loan Against Property (LAP) too, as it’s a natural adjacency to the home loan business. We’ll also provide working capital loans.
But we are a housing finance company, so the bulk of our business will be home loans. The share will be 75 percent housing and the LAP will be 25 percent.
How do you foresee loan growth over the next 3–5 years?
Since we are starting from a smaller base, CAGR numbers will naturally look high.
Currently, combined entities have a loan book of about Rs 2,000 crore. We can originate around Rs 1,500 crore annually, and with new branches, we aim to reach around Rs 12,000 crore in 5 years.
Could you share more details about the consolidation plan between this company and the existing one? When do you expect it to happen?
As of now, we own Capital India Home Loans. The Centrum Housing Finance acquisition depends on regulatory approvals, which we expect might take about six months. So, assuming control by April 1, 2026, we’ll then be operating around 130 branches.
We expect the consolidation of both companies likely to happen in FY27.
What will be the loan book size after consolidation?
It will be around Rs 2,000 crore, under People Home Finance Limited, post-merger.
Your parent entity is named Weaver Services. Why “Services” and not “Finance”?
The word ‘Weaver’ is more significant, the Weaver bird builds the most beautiful nest, symbolizing home. “Weaver Services” isn’t meant to denote a finance company, it’s more of a holding company that integrates and supports all businesses under it.
Any other buyouts or acquisitions planned in the near future?
Not immediately. Our hands are full for the next 9 months with this integration. We’ll look at new opportunities later.
After the consolidation (likely FY27), will you need to infuse additional capital?
Post-merger, the combined entity will have a capital base of about Rs 1,450 crore, which can support an AUM of Rs 6,000–Rs 7,000 crore. So, no immediate capital requirement.
As we grow, we may look for more capital in 2.5–3 years, and our existing investors are committed to providing it if needed.
What about listing plans post-consolidation?
Listing is still some time away. We’ll consider it once we have a proven business model, steady profitability, and strong return ratios. Our internal target is to reach an AUM of Rs 10,000–Rs 12,000 crore before exploring an IPO.
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