Roha Housing Finance, a subsidiary of Roha Group, has successfully raised ₹400 crore from alternative credit investors via a structured private credit transaction involving a promoter-owned vehicle. Key participants included ICICI Prudential Corporate Credit Opportunities Fund, Nippon India Credit Opportunities Fund, and ASK Alternate Private Credit Fund.
The capital will be utilized to bolster Roha Housing Finance, increasing its assets under management from approximately ₹1,250 crore to around ₹5,000 crore in the coming years, as per sources. The funds are being raised through Compulsory Convertible Debentures (CCDs) and Compulsory Convertible Preference Shares (CCPS), which serve to strengthen capital at the operational level.
The transaction garnered more than three times the investor demand. “Debt is raised at the promoter company level from credit funds, which act solely as lenders, offering fixed returns without equity participation,” noted a source. “These lenders will not convert into equity at any stage.”
Structured with a low running coupon and a redemption premium, this arrangement meets investor return expectations while supporting the company’s expansion plans. The investment is slated to mature in early 2029, in alignment with the Group’s strategy for accessing public markets for future growth in its financial services portfolio.
CCDs are considered Tier II capital, while CCPS qualify as Tier I capital, enhancing capital adequacy. Promoter shareholding remains at 100% both before and post-conversion unless there is future dilution by third-party equity.
This capital raise enables the housing finance company to considerably expand its assets under management, backed by the Roha Group’s extensive experience of over five decades in regulated business across global markets.
Founded in 1972 with Roha Dyechem, the Group has evolved into a global leader in food colors and dried ingredients. “The significant interest from distinguished institutional investors confirms our strategy to build Roha Housing Finance as a formidable, regulated housing finance platform catering to India’s growing middle-income segment,” stated Mahesh Tibrewala, Managing Director of Roha Group.
Launched in 2017, Roha Housing Finance signifies the Roha Group’s strategic foray into the housing finance sector. Led by MD & CEO Sunil Kapoor, the company is concentrating on the affordable housing market. Post-funding, the net worth is expected to reach around ₹700 crore by the end of March, providing ample capital for upcoming growth phases. Gaurav Pradhan, co-founder of Energia Wellbeing, and Rahul Bahety, founder of Prudenthill Advisors LLP, jointly advised on this transaction.
