Centrum Housing Finance Limited (CHFL), the affordable housing finance arm of the diversified Centrum Group, today announced that it has entered into a binding agreement to acquire the housing finance business of National Trust Housing Finance Limited (NATRUST).
NATRUST is a Chennai based Affordable Housing Finance Company with a presence in 17 locations across 4 states in South India. It has a loan book of over Rs 300 crores and a 149 member team. As per the agreement, CHFL will acquire the housing finance business including the loan portfolio, branches and employees. The acquisition will propel CHFL's AUM to over Rs. 1,000 crores.
CHFL commenced operations in 2017 and offers Home Loans, Loans against Property, Plot Purchase & Construction and Home Extension Loans with a focus on servicing low and middle income groups. It has a presence across 10 states in India. The acquisition will help CHFL expand geographical coverage, add origination capacities to augment organic growth.
Commenting on the acquisition, Jaspal Bindra, Executive Chairman, Centrum Group said, "There is a growing demand for affordable housing in India, beyond metros and tier 1 cities too. Small cities are witnessing a higher demand driven by greater urbanisation, digitisation, better infrastructure and connectivity. Schemes like the PMAY have provided a strong impetus to affordable housing and we believe this sector has immense growth potential. NATRUST is a reputed housing finance company with a high quality loan portfolio and a competent team. The acquisition consolidates our presence in South India, and will help us further increase our penetration across our chosen geographies."
Commenting on the sale, Mr.S.Rajagopal, Chairman, National Trust Housing Finance Limited, said "Natrust has since its inception in the mid '90s, been a pure play housing finance company, focused on the affordable segment in Southern India. Natrust has consistently been recognised for being a 'Great Place to Work', and has featured amongst the 30 top firms to work for in the BFSI segment. Natrust's niche focus in southern geographies together with its fine talent, complements Centrum's focus across other markets very well. We wish Centrum all the best in its ambitious plans for the housing finance business and beyond."
During the last few years, CHFL has significantly expanded its branch network, built a strong underwriting team, and established fresh borrowing relationships with banks and financial institutions. In February 2020, a fund managed by Morgan Stanley PE Asia, invested approx. Rs 190 crores to acquire a minority stake in CHFL.
Shares of Centrum Capital Limited was last trading in BSE at Rs. 27.15 as compared to the previous close of Rs. 26.65. The total number of shares traded during the day was 27359 in over 316 trades.
The stock hit an intraday high of Rs. 27.35 and intraday low of 26.20. The net turnover during the day was Rs. 740336.00.