Kedaara, Partners Group complete Aavas sell-downs

Kedaara sold 4.95 million shares for INR2,453 apiece, realizing proceeds of approximately INR12.2 billion ($165 million), according to stock exchange records. This followed a partial exit in February 2020 that netted INR6.7 billion.

Partners Group received INR8.37 million after offloading 3.41 million shares for roughly the same price. It also made a partial exit last year, receiving INR3.61 billion.

The two private equity investors now hold stakes of 23.2% and 16.3%, respectively. Based on Aavas’ August 23 closing price of INR2.37 billion, down 16% for the day, these positions are worth INR43.1 billion and INR30.2 billion.

Founded in 2011 as Au Housing Finance, Aavas was sold to Kedaara and Partners Group in 2016 for INR8.9 billion. The transaction was aimed at providing Aavas’ former parent Au Financiers with the working capital to satisfy regulatory requirements for its acquisition of a small finance bank license.

Au Financiers – in which Kedaara was also an investor – went public in 2017. Aavas followed in 2018, raising INR17 billion. Kedaara received INR7.4 billion, while Partners Group got INR4.9 billion.

Aavas provides loans to low and medium-income individuals in rural and semi-urban areas in India that lack access to formal banking credit, primarily for the purchase or construction of residential properties and the extension and repair of existing housing units.

As of March 2021, it had a loan book of INR94.5 billion, up from INR77.9 billion a year earlier, with more than 125,000 active loan accounts. Over the same period, revenue rose from INR9 billion to INR11 billion, while net profit increased from INR2.49 billion to INR2.89 billion.

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• Topics
• South Asia
• Financials
• Open market
• India
• Kedaara Capital
• Partners Group
• Financial Services