Sweden's EQT to Acquire Indostar Home Finance for Rs 1,750 Crore

Swedish private equity firm EQT has agreed to acquire Indostar Home Finance for Rs 1,750 crore. The acquisition via the MMG fund awaits regulatory approval. Indostar provides mortgages to lower-income customers in India and has grown significantly in recent years. EQT plans to expand Indostar’s reach and accelerate digital transformation.

Swedish private equity giant EQT is set to purchase Indostar Home Finance, a subsidiary of Indostar Capital Finance Limited, for Rs 1,750 crore (approximately USD 210 million). The acquisition, facilitated through the BPEA Mid-Market Growth Partnership (MMG fund), is subject to regulatory approvals, according to a joint statement released on Friday.

Founded in 2017, Indostar Home Finance specializes in providing affordable mortgages to retail customers, particularly in tier 2 to tier 4 cities across India. To date, the firm has assisted over 39,000 low-income homeowners and small businesses. Boasting assets under management exceeding Rs 2,400 crore, the firm has seen a stellar 32 percent compounded annual growth rate over the past three years.

EQT plans to inject Rs 500 crore of primary capital into Indostar Home Finance, facilitating the company's next growth phase. EQT aims to leverage its digitalization expertise and seasoned advisors to further enhance Indostar's geographic footprint and digital transformation, tapping into the burgeoning affordable housing market driven by favorable government policies and rising urbanization.

(With inputs from agencies.)