Westbridge, Existing Investors Invest In Housing Finance Company India Shelter F...

Jan 2015
India, January, 19 2015 - Westbridge Capital along with existing investors, Sequoia Capital and Nexus Venture, is infusing $30 Mn (c.R180 Cr) in housing finance company, India Shelter Finane Corporation.

While Westbridge will be infusing $18 Mn (c.R108 Cr), existing investors will be pumping in the rest.

India Shelter Finance Corporation formerly Satyaprakash Housing Finance India Limited offers retail home loans and loans against property to low income borrowers for a period of up to 15 years which can be used by borrowers for home improvements, home extension and for construction of dwelling units on plots owned by borrowers.

Sequoia had invested R30 Cr by way of CCPS in 2010. It again participates in a R35 Cr round led by Nexus wherein it invested over R90.7 Lakhs.

Operating out of 32 branches, the company has built a loan portfolio of R142 Cr (as on June 2014)with an average ticket size of R3.3 Lakhs.

Westbridge carved out of Sequoia Capital in 2011 had recently picked up a 20% stake in Aptus Value Housing Finance. Other’s in the portfolio include Vistaar Financial, Cholamandalam Investment and Finance, Dewan Housing. It had previously invested in SKS Microfinance and Equitas Microfinance.

With the current rate cut surprise by the governor and housing finance companies expected to be the highest beneficiaries, they have become the favourite of investors. The listed players including GIC Housing Finance, Canfin Homes, Repco Home Finance, Gruh Finance, Dewan Housing Finance and Indiabulls Housing Finance have risen between 10% and 50% in the past months.

Source : Deal Curry

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