EQT’s Power Play: Seals Deal to Drive Affordable Housing Growth with IndoStar’s Niwas Buyout

Global private equity giant EQT has closed the acquisition of Niwas Housing Finance Limited (formerly IndoStar Home Finance) from IndoStar Capital Finance Limited, among the most high-profile transactions in India's financial services space this year. The deal demonstrates EQT's strategic commitment to expand its footprint in India's burgeoning affordable housing finance space.

 

Key Highlights:

Transaction Value: IndoStar Capital Finance has received total consideration of ₹1,705.95 crore from EQT for the sale of 100% of Niwas Housing Finance.

 

Growth Capital Commitment: EQT will further invest ₹500 crore (about $58 million) in Niwas to expand geographically, upgrade technology, and digitalize.

 

Market Reach: Niwas, with over ₹3,000 crore under management, has assisted more than 47,000 low-income homeowners and micro-enterprises in tier 2 to tier 4 cities since 2017.

 

Sector Outlook: The transaction positions Niwas to leverage India's ₹30+ trillion housing finance potential, driven by robust demand, rising urbanization, and government-subsidized affordable housing programs.

 

Strategic Priorities: IndoStar will invest proceeds to accelerate growth in its key verticals of Vehicle Finance and Small Business Loans, while EQT leverages its digital and governance strength to empower Niwas towards its 2029 vision of empowering 150,000 families.

 

Leadership: Additions include a new Chairperson, K.R. Kamath, and ongoing stewardship in the hands of CEO Shreejit Menon, demonstrating a focus on responsible growth and customer focus.

 

Regulatory Approvals: The deal sailed through regulatory challenges with approvals by the Reserve Bank of India and National Housing Bank.

 

This transaction reaffirms EQT's confidence in India's financial services sector following its recent foray into education finance, a sign of growing global investor confidence in India's housing and lending sector.

 

Source: Moneycontrol, PRNewswire, IndoStar Capital Finance Limited, EQT Group, Asian Banking & Finance