Edelweiss to bring in Carlyle as Strategic Majority Investor for its Housing Finance Business

Edelweiss Financial Services Limited (Edelweiss) and global investment firm The Carlyle Group (NASDAQ: CG) today announced that investment funds affiliated with Carlyle will acquire a strategic majority stake in Nido Home Finance Limited (Nido), a wholly-owned subsidiary of Edelweiss. As part of the transaction, investment funds affiliated with Carlyle Asia Partners (CAP) will invest INR 2,100 Cr (approximately USD 230M), which includes acquiring a 45% stake in Nido from Edelweiss through a secondary purchase and a primary equity capital infusion of INR 1,500 Cr (approximately USD 165M) in Nido.

Established in 2010, Nido is one of India's leading housing finance companies, providing home loan solutions to customers across the affordable housing and mass-market segments. With a robust presence across the country, Nido operates a large network of branches, serving over 800 talukas (sub-districts) in India, and currently manages an AUM of INR 4,804 Cr (approximately USD 530M).

The transaction seeks to create a win-win opportunity for all stakeholders by bringing additional capital and operational expertise to better serve the affordable housing segment, predominantly in the rural and semi-urban markets in India, a key priority for the Indian government. Housing finance is an important pillar of India's growth, underpinned by structural demand, policy support, and a deepening formal credit ecosystem. For Edelweiss, the partnership seeks to advance its objective of creating and unlocking value in its businesses, while reinforcing Nido's growth momentum through the infusion of fresh growth capital.

For Carlyle, the investment reflects its continued commitment to supporting India's high- growth housing finance sector and builds on its more than two decades of deep expertise, operating capabilities and strong track record investing in India's financial services sector, including in housing finance businesses such as PNB Housing Finance Limited (PNBHF) and Housing Development Finance Corporation (HDFC). Aditya Puri, Senior Advisor to Carlyle in Asia, and former CEO and Managing Director of HDFC Bank, will also participate as an investor, underscoring the strategic importance of the investment.

Rashesh Shah, Chairman & MD, Edelweiss, said: "The investment by Carlyle in Nido is a key milestone and brings in a high-quality, long-term partner to accelerate Nido's next phase of growth. At a time when India's housing finance sector is witnessing strong structural demand, supported by rising affordability and deeper access to formal credit, Nido is well-placed to participate meaningfully in this opportunity. I have deep respect for the financial services franchise that Carlyle has built over many years in India and am very excited that they will be partners to help Nido in its next stage of scale-up. Nido has built a strong, purpose-led franchise in affordable housing finance, and I am confident that this combination of strong leadership and capital will help accelerate expansion and create enduring value for all stakeholders.

Sunil Kaul, Partner and Asia Financial Services Sector Lead, Carlyle, said: "We are thrilled to partner with Edelweiss to support the next phase of Nido's growth journey. Housing remains a critical national priority for India, and we have strong conviction in the growth potential of the housing finance industry. We are excited to build on our extensive experience in financial services and housing finance to help Nido scale its operations and serve the expanding needs of affordable housing segments in the rural and semi-urban markets. Additionally, we look forward to leveraging our operational experience to support Nido in strengthening its governance and risk management frameworks for long- term sustainable growth and success.

The transaction is subject to regulatory approvals of the Reserve Bank of India, National Housing Bank, Competition Commission of India, and other condition precedents customary to a transaction of this nature. AZB C Partners acted as legal advisors to Edelweiss, and Trilegal acted as legal advisor to Carlyle. Edelweiss will provide further updates in due course.

Shares of Edelweiss Financial Services Limited was last trading in BSE at Rs. 111.30 as compared to the previous close of Rs. 105.50. The total number of shares traded during the day was 133881 in over 936 trades.

The stock hit an intraday high of Rs. 111.85 and intraday low of 106.00. The net turnover during the day was Rs. 14622802.00.

Source : Equity Bulls

Keywords

EdelweissFinancialServices INE532F01054 Carlyle StrategicMajorityInvestor HousingFinanceBusiness