Blackstone emerges as winner to buy Aadhar Housing Finance for Rs 2,700 crore

Private equity firm Blackstone today bought Aadhar Housing Finance, affordable housing arm of Wadhawan Global for about Rs 2,700 crore, outbidding private-equity fund Baring Private Equity and Hero Fincorp. “Blackstone emerged as the winner for the affordable housing finance arm of Wadhawan’sDewan Housing bidding the business at Rs 2,700 crore, which is three times the book,” said a source close to the development. The company was looking at this deal to free up capital and use the fund to ease liquidity pressure on Dewan Housing Finance. DHFL shares plunged 17.96% on Friday. The shares of DHFL has been under pressure after a news portal alleged that the company had diverted loans worth Rs 31,000 crore. The stock came under further pressure after reports about ministry of corporate affairs initiating probe on the allegations emerged. However, the company has denied receiving any letter from MCA initiating investigation, it has said that the allegations are made with mala fide intent to cause damage to the goodwill and reputation of the company. Wadhawan Global Capital, the holding company of DHFL owns 70%, International Finance Corp, the investment arm of World Bank around 17%, DHFL 9% and other minority shareholders hold the remaining 3-4%. Set up in 2011 after the merger of DHFL Vysya and Aadhar Housing Finance, Aadhar has operations in 13 states, including Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Orissa, Jharkhand and Bihar.