Business Daily from THE HINDU group of publications
Thursday, Jan 10, 2008
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Business Daily from THE HINDU group of publications Thursday, Jan 10, 2008 ePaper | Mobile/PDA Version |
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Foreign Institutional Investors Money & Banking - Housing Finance Carlyle picks up 49% in Repco Home M. Ramesh Chennai, Jan. 9 Carlyle Asia Growth Capital Partners has committed to pick up 49 per cent equity stake in the Chennai-based Repco Home Finance Ltd for a consideration of $27.7 million (Rs 110 crore). Repco, a subsidiary of Repatriates Co-operative Finance & Development Bank Ltd, has been in the housing finance market since 2000. Its outstanding loan book is about Rs 650 crore. Latest TrendThis is the latest in the trend of foreign entities picking up equity stake in Indian mortgage finance companies. For instance, in March 2007, AIG of the US took over Weizmann Homes Ltd. In May that year, UCB, a subsidiary of BNP Paribas SA, bought 49.9 per cent in Chennai-based Sundaram Home Finance. Business Line had reported in July that Repco Home Finance was in talks with a few foreign entities to get a partner on board. Finally, it was Carlyle. Confirming the development to Business Line, Repco Home’s Managing Director, Mr M Balasubramanian, said that the company expected to raise its loan book to upwards of Rs 1,000 crore by March 2009. He said that among housing finance companies, Repco Home ranked No.1 in terms of return on assets (2.61 per cent) and No.2 (after HDFC) in terms of return on capital employed (24.83 per cent). It is learnt that Carlyle would be issued fresh shares. The consequent inflow of funds could be leveraged ten times to raise the lendable resources with the company. Foreign bank picking up stake in Repco Home Fin More Stories on : Foreign Institutional Investors | Housing Finance | Mortgage
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