IIFL Home Finance Limited has entered into definitive agreement for raising ₹2,200 crore of primary capital for a 20 per cent stake from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA). The deal completion is subject to regulatory approvals.

This would be one of the largest equity investments in the affordable housing finance segment in India by a financial investor. IIFL Home Finance proposes to use the additional capital to continue its granular expansion strategy into new markets to address the significant and growing demand for housing loans.

‘Delighted to partner’

Speaking on the occasion, Nirmal Jain, Founder, IIFL Group said, “We are delighted to partner with ADIA who bring to the table long term commitment and rich experience of supporting growing businesses. The investment recognises IIFL Home Finance’s position as one of India’s largest providers of affordable housing loans and how well it is placed to continue to target the large, resilient housing finance market.”

Company background

Established in 2006 as a wholly-owned subsidiary of IIFL Finance, IIFL Home Finance has created assets under management of ₹23,617 crore as of March 31, 2022, with an active customer base of 1,68,000 across 16 States and two union territories with over 200 branches backed by over 3,200 employees.

The company offers small-ticket housing loans, loans against property and construction finance. It also actively supports the construction of green affordable buildings in the country in collaboration with housing developers and other experts through its proprietary ‘Kutumb’ platform in an effort to limit the carbon footprint and provide cost-efficient structures.