To fund this acquisition, Weaver Services is raising capital from prominent private equity investors such as Gaja Capital and Lok Capital, aiming to secure up to Rs 800 crore, according to a company release.

CIFL, a modern player in the affordable housing sector, highlighted that the sale is part of its strategic shift towards focusing on its core businesses. The transaction is still subject to regulatory approval.

“The capital released from this sale will enable Capital India to expand further, leveraging strong equity capitalization and improving operational performance,” said Pinank Jayant Shah, CEO of Capital India Finance Limited.

Upon receiving regulatory approval and finalizing the acquisition, Weaver Services plans to introduce a range of innovative home loan products tailored for citizens of Bharat.

“Our primary goal is to empower self-employed individuals in the unorganized sector, especially in Tier 2 and Tier 3 towns. Weaver is dedicated to promoting financial inclusion, with a special focus on providing access to women borrowers who often face challenges in traditional financial systems,” the company’s release stated.

Weaver Services comprises a team of finance experts, including Satrajit Bhattacharya, who previously led the Investments and M&A division at HDFC Limited, along with other former HDFC executives.

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Aadhar was purchased by private equity firm Blackstone in 2019 for roughly $300 million as a result of the group’s wager on the rising demand in India for finance and affordable housing.

The IPO is Aadhar’s second attempt at listing following the cancellation of a $1 billion plan in 2022 due to market turbulence following the conflict between Russia and Ukraine.

According to these sources, Aadhar intends to submit its IPO paperwork to India’s market regulator in the upcoming two weeks.

In the midst of record-high stock markets in India—a rare bright spot for international investors—a deal would be the most recent instance of private equity investors seeking to sell off portions of their businesses.

A rapidly expanding economy and promises of political stability are driving the nation’s record-listing intentions at the moment. Its benchmark index, the Sensex, is trading close to record highs, and its stock market recently surpassed Hong Kong’s to become the fourth largest in the world.

“Blackstone intends to sell a portion of its holding to profit from the current state of the market. Since the IPO plan is still confidential, one of the two sources, who wished to remain anonymous, stated that timing is crucial for a progressive sell-down.

As consultants for its most recent initial public offering (IPO) filing, Aadhar has enlisted investment banks Citi, Nomura, and India’s Kotak and ICICI. The sources stated that a Mumbai listing is anticipated by May.

Citi, Nomura, and Blackstone all declined to comment. Aadhar, ICICI, and Kotak did not reply to requests for comments.

Aadhar provides house loans up to $18,000 to individuals with as low as $75 monthly income in a nation where escalating real estate costs have made major city property ownership more and more challenging.

According to the company, “economically weaker sections and low-income groups” receive the majority of its loans.

Although state-owned and private banks account for the majority of mortgage loans in India, more recent private equity-owned companies are vying for market dominance. In recent years, investors like Morgan Stanley and Warburg Pincus have placed bets on the industry.

Aadhar claims to oversee $2 billion in loans across 20 Indian states and 479 offices. According to its annual report, during 2022–2023 its net profit increased by 22% to $65 million, while its total income increased by 18% to $245 million.

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