MUMBAI: Advent International, a leading private equity firm, has announced its intention to invest ₹2,750 crore for a 14.3% stake in Aditya Birla Housing Finance (ABHF), as revealed by both companies on Tuesday.
ABHF is a wholly-owned subsidiary of Aditya Birla Capital (ABC), which serves as the financial services arm of the diversified Aditya Birla Group. The investment will be made by Indriya, an Advent entity, through a primary share issuance, according to an official statement.
The boards of ABC and ABHF have given their approval for the capital raise, with the transaction pending approval from shareholders, regulatory bodies, and other customary conditions, as stated.
This transaction values ABHF at ₹19,250 crore on a post-money basis, leaving ABC with an 85.7% stake in the company after the deal is completed, while Advent retains approximately 14.3% stake in ABHFL, as reported in the statement.
“This capital infusion will significantly bolster ABHF’s financial foundation, enhance market reach, and improve its capacity to shape a sustainable housing finance ecosystem in India,” remarked Kumar Mangalam Birla, Chairman of the Aditya Birla Group.
He noted that the housing sector is currently at a pivotal turning point, spurred by policy initiatives like the Pradhan Mantri Awas Yojana, a focus on affordable urban housing, and the growing infrastructure in both urban and rural areas.
Shweta Jalan, managing partner at Advent, mentioned that the mortgage market is experiencing favorable structural trends, backed by supportive government measures and a favorable regulatory framework. ABHF has established a reputable franchise known for its robust risk management and governance standards.
“We believe strongly in the leadership team and are excited to assist as the company moves into its next growth phase,” Jalan added.
ABC’s Managing Director and CEO, Vishakha Mulye, stated that the company will focus on expanding its market share following this capital infusion, emphasizing its commitment to both prime and affordable housing segments, alongside construction finance. ABHF enjoys a widespread distribution network across India due to its omnichannel sourcing approach.
According to the statement, ABHF registered assets under management of ₹42,204 crore as of December 31, 2025, demonstrating a compound annual growth rate of 48% over the past three years.
ABHF ranks among the top three players in terms of incremental loan book growth, and only 0.54% of its total assets are categorized as gross stage three, meaning unpaid for over 90 days.
The ABC stock was trading up by 5.72% at ₹352.15 on the BSE as of 09:28 AM, outperforming the benchmark index, which showed a 2.78% increase.
