MUMBAI: Private equity firm Advent International will acquire a 14.3% stake in Aditya Birla Housing Finance Ltd (ABHFL) for ₹2,750 crore, valuing the company at ₹19,250 crore on a post-money basis, according to a regulatory filing by listed parent Aditya Birla Capital.
The parent will retain an 85.7% stake. Advent, which was an investor in Aditya Birla Capital from 2020 to 2025, will route the investment through its affiliate Indriya Ltd.
The deal highlights growing foreign interest in India’s financial sector. In 2025, Sumitomo Mitsui Banking Corp. bought 20% of Yes Bank for $1.58 billion, MUFG acquired a 20% stake in Shriram Finance Ltd for $4.4 billion, Mizuho Securities took a majority stake in Avendus, and Emirates NBD agreed to acquire 60% of RBL Bank for ₹26,850 crore.
Growth engine
Aditya Birla Housing Finance is among India’s top three housing finance firms in terms of incremental loan book growth. Its assets under management (AUM) rose at a compounded annual growth rate of 48% over the past three years to ₹42,204 crore as of December 31, 2025. ABHFL maintains a gross stage 3 ratio of 0.54% and a net stage 3 ratio of 0.23%, it said.
“The proposed capital infusion will strengthen ABHFL’s financial foundation, enable deeper market penetration, and enhance its ability to shape India’s inclusive and sustainable housing finance ecosystem,” Kumar Mangalam Birla, chairperson of the Aditya Birla Group, said in a press statement.
The Advent deal is ABHFL’s first primary capital infusion. A year ago, the company had raised ₹830 crore via non-convertible debentures from the World Bank Group’s International Finance Corp., mainly for low- and middle-income housing loans and MSME lending. In May 2025, Aditya Birla Capital also infused ₹249 crore into the unit.
Shweta Jalan, managing partner at Advent International, said the firm sees “strong structural tailwinds” in India’s mortgage market, driven by supportive government initiatives and a constructive regulatory framework. She added that Advent has strong conviction in ABHFL’s leadership and will back the company through its next growth phase.
The deal comes at a time when housing finance companies (HFCs) are increasingly leaning on non-housing loans to protect margins and growth. Ratings agency Icra Ltd expects healthy earnings and growth for HFCs in FY26-27.
“Icra expects healthy growth of 15-17% in HFCs’ assets under management during FY2026 and FY2027,” the agency said in a January 2026 report. Growth in the non-home loans segment has been increasing over the past few quarters, the report read. “Icra expects the share of NHLs to inch up further in the near term amid competitive challenges in the housing loan segment and pressure on margins.”
The Economic Survey 2025-26, released on 29 January 2026, highlighted that housing loans as a share of GDP rose to 11% in FY25 from 8% in FY15. It credited demand-side measures, such as interest subvention under PMAY (Urban), the Affordable Housing Fund, lower interest rates, and streamlined credit processes—for improving access to housing finance. Urban initiatives like the Smart Cities Mission and the Urban Infrastructure Development Fund (UIDF) have also supported housing demand in tier II and tier III cities.
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