Advent International in Advanced Talks to Invest $300 Million in Aditya Birla Housing Finance to Boost Growth and Capital Adequacy – CNBC TV18

Personal fairness main Advent International is learnt to be in superior discussions to infuse round $300 million into Aditya Birla Housing Finance, in accordance to individuals accustomed to the matter. If concluded, this could mark one of many bigger single-ticket personal fairness investments in India’s housing finance house in current years.

The transaction is being structured as a major capital infusion, in alternate of a minority stake, sources stated. The capital is predicted to be used to strengthen the steadiness sheet, enhance capital adequacy and assist mortgage guide growth, notably as housing financiers put together for the following part of credit score progress.

Aditya Birla Housing Finance is a completely owned subsidiary of Aditya Birla Capital, which has been sharpening its give attention to retail lending as a core progress engine. Inside that technique, housing finance performs a vital position, providing lengthy-tenure, secured belongings and comparatively predictable money flows in contrast with unsecured credit score.

The proposed Advent funding comes at a time when housing finance corporations (HFCs) are consciously constructing capital buffers. After a interval of cautious lending submit the pandemic, demand for house loans, particularly in the inexpensive and mid-earnings segments, has remained resilient, pushed by urbanisation, infrastructure-led growth and coverage assist for housing.

On the similar time, regulators and ranking companies have been emphasising capital adequacy and legal responsibility diversification, pushing lenders to rely much less on quick-time period market borrowings and extra on steady fairness capital. A big PE cheque, subsequently, not solely fuels progress but in addition strengthens confidence amongst debt buyers.

Aditya Birla Housing Finance has already been energetic on the funding entrance. In January 2025, it raised ₹830 crore from the International Finance Company (IFC) via non-convertible debentures, with proceeds earmarked largely for inexpensive housing and MSME-linked lending. Individually, the dad or mum, Aditya Birla Capital, infused ₹249 crore into the subsidiary to assist progress and enhance leverage metrics, following earlier capital assist as nicely.

Diversification of capital base

In opposition to this backdrop, sources stated Advent’s proposed funding would additional diversify the capital base, lowering reliance on periodic dad or mum infusions and debt issuances.

For Advent, the funding would sign continued conviction in India’s secured retail credit score story, even because the agency has monetised components of its earlier publicity to Aditya Birla Capital on the dad or mum degree. For Aditya Birla Housing Finance, the capital may present the firepower wanted to scale up lending, deepen presence in precedence housing segments and navigate asset-high quality cycles from a place of power.

Each the businesses didn’t instantly reply to CNBC-TV18’s queries.