03 Jun 2024

Arpwood Partners Fund LLP is set to acquire a majority stake in SEWA Grih Rin, also known as Sitara, a housing finance company focused on providing affordable loans to low-income households, especially women, in urban and semi-urban India. Founded in 2015, Sitara has assets worth INR 1,200 crores and over 25,000 customers across 75 branches. Arpwood Partners, a private equity firm led by Rajeev Gupta, will invest INR 680 crores to acquire a major stake as part of Sitara's INR 705 crores fundraising effort. The deal, pending RBI approval, aims to enhance Sitara's operations and expand its reach.Read more

31 May 2024

Sundaram Home Finance reported a net profit of INR 57 crore for the January-March 2024 quarter, down from INR 65 crore in the same period last year. However, for the full fiscal year 2023-24, net profits grew to INR 236 crore from INR 215 crore the previous year. Disbursements in Q4 rose 20% to INR 1,469 crore, and overall disbursements crossed INR 5,000 crore for FY24, up 27%. Assets Under Management increased to INR 13,812 crore as of March 31, 2024, from INR 11,180 crore a year ago. The company expanded its branch network to 150 and hired over 400 employees during the year.Read more

31 May 2024

Strata, India's largest commercial real estate investment platform, has applied for a Small and Medium REITs (SM REITs) license from the Securities and Exchange Board of India (SEBI). SEBI recently introduced new regulations expanding the fractional ownership model to assets over INR 50 crore. Strata will migrate eligible assets to SM REITs as it looks to achieve INR 2,000 crore in assets under management by fiscal 2025. Strata currently leads the fractional ownership sector with over INR 1,800 crore in transactions and 4 million square feet under management across major Indian cities. In line with its vision and coupled with acquiring a SM REITs license, Strata aims to be the largest alternative investment platform in India by enabling retail investors to invest in CRE assets and democratizing access through its easy-to-use online platform.Read more

31 May 2024

Homebuyers now prioritize proximity to shopping malls, which have evolved into hubs offering high-end retail, entertainment, and lifestyle amenities. The average Indian household visits a mall 15 times a year, underscoring their growing urban significance. Real estate developers are responding by integrating malls into residential projects, enhancing property value and catering to urban lifestyle preferences. With over INR 20,000 crore planned for mall investments and mixed-use developments expected to grow by 20% in five years, India's urban landscape is set to become more dynamic and integrated, driven by consumer demand and significant institutional investments.Read more

31 May 2024

TA Associates is set to acquire a significant stake in Vastu Housing Finance Corp. Ltd for about USD 400 million, valuing the company at over USD 1.4 billion. The deal, involving both secondary and primary fundraises, will also see increased investments from existing investors such as Norwest Venture Partners and 360 One Asset Management. Vastu Housing Finance, focused on the affordable housing segment, has maintained profitability and strong capitalisation, positioning it for continued growth.Read more

30 May 2024

IIFL Home Finance (IIFL HFL) has reported impressive financial results for FY24, with a 32% rise in profit after tax to INR 1,017 crore. Revenue from operations increased by 23% to INR 3,317 crore, and their Asset Under Management (AUM) grew by 25% to INR 35,499 crore. Loan disbursements rose by 28% to INR 12,861 crore. The company maintains a robust capital adequacy ratio of 42.7% and reduced gross non-performing assets from 2.1% to 1.5%. Securing over USD 450 million in funding, IIFL HFL continues to drive affordable housing, addressing India's 2.1 crore unit housing shortage.Read more

30 May 2024

Eldeco Housing & Industries saw a 21.54% decline in net consolidated profit in Q4 FY24, reporting INR 11.69 crore compared to INR 14.90 crore in the previous year. However, its consolidated total income grew by 22.79% to INR 51.56 crore. Chairman Pankaj Bajaj highlighted record sales bookings and new land acquisitions. The company proposed a final dividend of 400% and approved increased remuneration for Bajaj. Total area booked surged by 803%, collections rose by 62% YoY, and land purchases totaled 65 acres. Bajaj also noted fresh land acquisition in Lucknow, aiming to launch projects in FY24-25.Read more

30 May 2024

The cost of living crisis in major Indian cities, notably Bengaluru and Mumbai, stems from a stark misalignment between stagnant salary increases and soaring rental prices. Limited housing supply, especially near tech hubs, worsens the situation as demand surges with the return to work from office. Rising rental costs outpacing income growth have pushed residents to allocate more of their earnings towards rent, impacting disposable income and prompting consideration of homeownership. This trend reflects a broader challenge of housing affordability, straining urban living conditions and potentially dampening home-buying sentiment.Read more

29 May 2024

PNB Housing Finance aims to grow its loan portfolio by 17% this fiscal year, focusing on the booming affordable housing segment and expanding its branch network. The company, financially bolstered by a successful INR 2,500 crore rights issue in 2023, is well-equipped for this expansion. Managing Director Girish Kousgi confirmed no additional capital is needed for the next 2-3 years. With an existing loan book of INR 63,000 crore and a burgeoning affordable housing portfolio of INR 1,790 crore, PNB Housing plans to add 50 more branches to its current 300, targeting high-demand areas for affordable housing loans.Read more

29 May 2024

Indian banks face a dilemma following the Reserve Bank of India's (RBI) proposal to raise loan provisions for project, commercial, and real estate loans to 5% from the current 0.4%-1%. This significant increase means banks will need to set aside up to five times more funds to cover potential loan defaults, potentially impacting their profitability. Raising interest rates to offset this cost is challenging due to competitive loan pricing by state-owned financial companies. The phased implementation aims to ease the transition, but banks are concerned about the impact on their earnings and borrower relationships.Read more