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Advent International is investing INR 2,750 crore to acquire a 14.3 per cent stake in Aditya Birla Housing Finance, valuing the company at INR 19,250 crore post-transaction. The investment, made through primary share issuance by ABHF, is aimed at strengthening its financial base and expanding market reach. ABHF, fully owned by Aditya Birla Capital, has a pan-India presence and focuses on prime, affordable, and construction finance segments. With assets under management of INR 42,204 crore and strong risk management practices, the company is positioned among the top three in incremental loan growth.
Private equity firm Advent International is set to invest INR 2,750 crore to acquire a 14.3 per cent stake in Aditya Birla Housing Finance (ABHF), according to a joint announcement made earlier this week. ABHF is fully owned by Aditya Birla Capital (ABC), the listed financial services arm of the Aditya Birla Group, and the investment will be made through a primary issuance of shares by ABHF, an Advent entity named Indriya. Advertisement
The boards of ABC and ABHF have approved the capital raise, but the completion of the transaction remains subject to approvals from shareholders, regulatory authorities, and other customary conditions. The deal values ABHF at INR 19,250 crore on a post-money basis, with ABC retaining 85.7 per cent ownership while Advent will hold 14.3 per cent in the company.
Aditya Birla Group Chairman Kumar Mangalam Birla noted that the capital infusion is expected to strengthen ABHF's financial foundation, support deeper market penetration, and enhance its ability to contribute to India's inclusive and sustainable housing finance ecosystem. He added that the housing sector is experiencing a significant growth phase, driven by policy initiatives such as the Pradhan Mantri Awas Yojana, emphasis on affordable urban housing, and expanding infrastructure across urban and rural regions.
Shweta Jalan, managing partner at Advent, highlighted that the mortgage market is benefiting from strong structural tailwinds, including supportive government policies and a positive regulatory framework. She emphasized that ABHF has established a high-quality, trusted franchise with robust risk management and governance practices. She also expressed confidence in the leadership team and said Advent is pleased to support the company as it enters the next phase of growth.
ABC Managing Director and CEO Vishakha Mulye stated that the capital raise will help ABHF accelerate its expansion and increase its market share. She added that the company focuses on prime and affordable housing segments, as well as construction finance, and has a pan-India presence supported by an omnichannel distribution network.
As of the end of December 2025, ABHF's assets under management stood at INR 42,204 crore, reflecting a compounded annual growth of 48 per cent over the last three years. The company ranks among the top three players in incremental loan book growth and reported only 0.54 per cent of its total assets in the gross stage three category, which includes loans overdue by more than 90 days.
Following the announcement, ABC's shares were trading 5.72 per cent higher at INR 352.15 on the BSE, compared with a 2.78 per cent rise in the benchmark index.
Source PTI
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