Wednesday 12 June 2019

Blackstone Acquires Aadhar, India’s Largest Independent Affordable Housing Finance Company


Mumbai, June 11, 2019: Blackstone (NYSE:BX) today announced that private equity funds managed by Blackstone ("Blackstone") have acquired a 97.7% stake in Aadhar Housing Finance Limited (“Aadhar”), including the entire stake held by the existing controlling shareholders, Wadhawan Global Capital Limited (“WGC”) and Dewan Housing Finance Limited. As part of the transaction, Blackstone has also infused INR 8,000 million primary equity capital into Aadhar to fund the company for future growth.
Aadhar is India’s largest independent affordable housing finance company with a network of 316 branches across 20 states and union territories and an AUM of INR 100 billion (~USD 1.4 billion) which comprises 100% secured lending to retail customers with an average loan ticket size of less than INR 1 million (~USD 14,000).
Mr. Amit Dixit, Head of India Private Equity and Senior Managing Director at Blackstone, said:
“Aadhar has the strongest origination capability in the sector with 316 branches. Our primary capital infusion of INR 8,000 million has approximately doubled the company’s Net Worth and reduced its Debt to Equity ratio by roughly half. We expect the rating agencies and company’s lenders to welcome the ownership transition to a long term, well capitalized and patient investor in Blackstone. We are proud to support the Government’s ‘Housing for All’ mission and provide capital and much needed confidence to the HFC/NBFC sector. Finally, we want to thank the current owners for building a great company with a strong management team and robust credit underwriting processes. We plan to take the baton forward, back the management team, and fulfill their ambition of becoming the #1 company in the sector on all dimensions.”
Mr. Kapil Wadhawan, Chairman of WGC, said:
“Aadhar has thrived phenomenally, emerging as one of the largest and most trusted entities in the affordable housing segment. Aadhar has consistently committed to the integrated aim of creating better products and services for its customers. We sincerely wish all the success to the housing finance firm for its new journey as a company backed by Blackstone, the world’s largest alternative asset manager.”
Mr. Deo Shankar Tripathi, Managing Director and CEO at Aadhar, said:
“The entire management team is excited to partner with Blackstone, the world’s largest alternative asset manager with AUM of USD 512 billion. Blackstone’s ownership and the upfront capital infusion have been perceived very positively by all stakeholders of the Company. This investment is a testament to the dedication of our outstanding employees who have built this Company. Our focus will remain to provide home ownership to every Indian, providing them accessible, easy and quick housing finance services. With the support of our new partners, we look forward to extending our services to our customers, enabling them to achieve their dreams of owning a home.”
About Aadhar
Aadhar is one of the largest housing finance companies in India servicing the home financing needs of the low-income segment. Aadhar endeavours to empower underserved millions to own their first homes. Erstwhile Aadhar Housing Finance Limited (EAHFL) was incorporated in 2010 and later amalgamated with DHFL Vysya w.e.f 20th November, 2017 and subsequently name changed to Aadhar Housing Finance Limited. Today, its 316 branches across 20 states and union territories help to reach more than 90% of the country’s low-income population and provide credit solutions that make home ownership accessible to everyone.
Further information is available at www.aadharhousing.com
About Blackstone
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with approximately USD 512 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on global basis.
Blackstone has been active in India since 2006 and has committed USD 10.4 billion of investments in India through private equity, real estate and tactical opportunities.

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