Aavas Financiers: Big-bang stake sale brewing as Kedaara, Partners Group explore full exit
Summary
In March, both firms divested 12.6 percent in Aavas Financiers for Rs 1,369 crore.A second person told Moneycontrol that investment bank Jefferies has been mandated as the sell side advisor. But whoever enters will become the single largest shareholder in the firm," he elaborated.In recent times, the likes of Bain Capital, CVC Capital, Advent International, Warburg Pincus, Mubadala and Ontario Teachers Pension Plan have evinced interest in NBFC deals or struck them.All the four persons above spoke to Moneycontrol on the condition of anonymity.When contacted, Kedaara Capital and Partners Group declined to comment.Email queries and multiple reminders sent to Aavas Financiers and the firms MD and CEO were left unanswered at the time of publishing this article. Jefferies couldnt be reached for an immediate response.In February 2016, a Kedaara-Partners JV acquired Aavas Financiers Ltd for around Rs 950 crore, according to media reports. Assets under management also rose 22 percent to Rs 17,300 crore during the same period.Also Read: Aadhar Housing CEO: Eventually it will be a two-horse race between us and Aavas FinanciersAccording to its website, Jaipur-based Aavas is engaged in the business of providing housing loans, primarily, in under-served markets which include the states of Rajasthan, Maharashtra, Gujarat, Madhya Pradesh, Haryana, Uttar Pradesh, Chhattisgarh, Uttarakhand, Punjab, Himachal Pradesh, Delhi, Odisha, and Karnataka. Currently, the firm is operating with a total of 371 branches, the website added.Heres a slice of some of the frenetic deal action from the NBFC segment this year.In February, digital non-banking finance company Credit Saison (CS) India said Japans Mizuho Bank acquired 15 percent stake in it for Rs 1,200 crore.Warburg Pincus- and Kedaara Capital-backed Avanse Financial Services, an education-focused non-banking financial company (NBFC), announced on March 26 that it has raised primary capital of Rs 1,000 crore.This round of funding was led by Mubadala Investment Company, an Abu Dhabi-based investment company, with participation from Avendus PE Investment Advisors Private Limited through its fund Avendus Future Leaders Fund II.Top Chennai-based retail NBFC Shriram Finance announced the sale of its subsidiary Shriram Housing Finance to global private equity firm Warburg Pincus for Rs 4,630 crore on May 13.On December 14, Moneycontrol was the first to report that the listed parent had revived stake sale plans to unlock value in Shriram Housing Finance and launched a process to sell a controlling stake in the arm.Also Read: Shriram HF acquisition is a Deja Vu moment for us, says Narendra Ostawal of Warburg PincusBlackstone-backed Aadhar Housing Finance listed on the stock exchanges on May 15.