Multiple Alternate Asset Management-backed affordable housing company Vastu Housing Finance expects to raise $250-300mn (Rs 2020 crore to Rs 2460 cr) through a combination of primary and secondary share sales before the end of this financial year.
At least $75mn (Rs 615 cr) will be ploughed back into the company as fresh capital with new investors which will help the company sustain its growth. The new investors will be global funds and sovereign wealth funds.
The company has assets of about Rs 5,000 crore under management, primarily consisting of mortgages to the self-employed segment with an average ticket size of Rs 13 lakh. Earlier this year it started a micro-housing business and is also building a commercial vehicle loan book through a subsidiary. Menon said the fresh capital will also help build these two businesses.
The majority of the fundraising will be through the secondary sale as existing investors will sell part of their stake to new investors. The $1.8bn Multiples Alternate Asset Management has been an early backer and the largest shareholder with a 65% stake. It started investing in Vastu Housing Finance in 2016-17 and has so far put in $100mn in the company.
Creation Investments Capital Management holds a 10% stake in Vastu Housing Finance Norwest Partners 10% and IIFL asset management 5% while the rest is divided between the employees and founding investors Pramod Bhasin and Vikram Gandhi.
