EQT To Buy India-based Indostar Home Finance For $210 Mln

(RTTNews) - EQT Corp. (EQT), an investment organization, announced Friday its agreement to acquire Indostar Home Finance, an Indian affordable housing finance company, for INR 17.5 billion or $210 million. The company also plans to invest INR 5 billion to support further growth.

The transaction is subject to customary regulatory approvals.

Indostar Home Finance is a fast-growing affordable housing finance company with INR 24 billion or $286 million in assets under management. It provides affordable mortgages to retail customers in tier 2 to tier 4 cities in India. The company has a network of more than 130 branches spread across nine states and employs over 1,000 people.

In the deal, the BPEA Mid-Market Growth Partnership or the MMG fund will acquire Indostar Home Finance, a unit of Indostar Capital Finance Ltd.

Further, the MMG fund will invest INR 5 billion of primary capital in Indostar Home Finance to support its next phase of growth.

EQT said it aims to expand the company's geographic footprint and accelerate its digital transformation journey.

Ashish Agrawal, Partner in the EQT Private Capital Asia advisory team, said, "Retail lending is a key investment theme for EQT within financial services in India. Building on our investment in the education finance sector through HDFC Credila last year, we are thrilled to welcome Indostar Home Finance to our portfolio. India's affordable housing finance sector represents a long-term growth opportunity supported by secular demand drivers, favorable government policies and resilient asset quality across economic cycles."