ADIA to invest Rs 2200 crore in IIFL Home Finance

10 Jun 2022 , 11:11 AM

In a statement on June 9, IIFL Finance has stated that it has entered a definitive agreement with a subsidiary of Abu Dhabi Investment Authority (ADIA). The company’s housing finance subsidiary will get equity investment of Rs 2200 crore from ADIA for a 20% stake in it.

According to a press release from IIFL Finance, this will be one of the largest equity investments in India’s affordable home finance segment by a financial investor. The increased capital will be used by IIFL Home Finance Limited to continue its granular expansion strategy into new markets in order to meet the considerable and growing demand for housing loans.

Currently, India’s affordable housing finance sector is worth more than $150 billion, and it is expected to develop substantially over the next decade. Multiple players have emerged to take advantage of the large whitespace where banks have limited presence, according to the release, and the sector has seen disproportionate growth due to an increase in mortgage penetration, rebound in property sales, government and regulatory initiatives, and developer consolidation, among other factors.