India: Three firms in fray to buy Au Financiers’ $150m home loan business

Three firms are currently in the fray to buy the Rs 1,000 crore (around $150 million) home loan business of Jaipur-based lender Au Financiers, according to a report in The Economic Times.

Everstone-backed local lender Indostar, PE fund Multiples, and existing shareholder Kedaara Capital along with American PE fund Partners are now in the fray for the deal.

Local investment bank Axis Capital is advising Au Financiers, who is seeking to exit the business after getting a small bank licence from the Reserve Bank of India, the report said quoting two unnamed sources.

The sellers are reportedly seeking five times the net worth of the business which is estimated to be around Rs 1,100 crore.

“In such deals, home loan business is sold at anywhere between 2.5 to 3 times of the net worth,” an investment banker aware of the development said.

“The promoters might sell out completely or would retain the maximum allowed 10 per cent stake and continue to run the business,” said another investment banker.

Incorporated in February 2011, Au Housing Finance is a wholly-owned subsidiary of Au Financiers Ltd. It is engaged in the business of providing housing loans, primarily in the unserved markets of Rajasthan, Maharashtra, Gujarat, Madhya Pradesh, Haryana and Delhi, as per the company’s website.

Also Read: India Dealbook: AU Financiers to sell home finance biz; AMM Hospitality sells 26%

India: PE firms TPG, Partners Capital in race for ICICI Bank’s housing finance biz

 

 

 

 

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.