Carlyle, Puri to Buy Edelweiss Home Fin Arm Stake

Mumbai, Feb 10 (PTI) Former HDFC Bank chief executive Aditya Puri is teaming up with private equity major Carlyle group to buy a majority stake in Edelweiss Financial Services' home finance arm for Rs 2,100 crore.

Puri's investment vehicle Salisbury Investments, along with Carlyle affiliate CA Sardo Investments, will buy 73 per cent stake in Nido Home Finance in a multilayered deal expected to get completed by July this year, as per an official statement.

The two entities will first pick up 45 per cent in Nido through a mix of primary and secondary equity buying, and then raise its overall holding to 73 per cent through the conversion of warrants, the official statement said.

The primary issuance of shares will be to the extent of Rs 1,500 crore, while the remaining Rs 600 crore will be secondary buys from existing shareholders.

At present, Nido is a wholly owned subsidiary of the Edelweiss group, and the shareholders include Edelweiss Rural and Corporate Services and Edel Finance Company.


The exact stake to be held between Puri and Carlyle was not immediately known. Puri, who is a senior advisor to the Carlyle Group had also co-invested with the PE firm in PNB Housing Finance in 2021, as per media reports.

"We have strong conviction in the growth potential of the housing finance industry. We are excited to build on our extensive experience in financial services and housing finance to help Nido scale its operations and serve the expanding needs of affordable housing segments in the rural and semi-urban markets," Sunil Kaul, partner and Asia financial services sector lead at Carlyle, said.

The transaction is subject to regulatory approvals of the Reserve Bank of India, National Housing Bank, Competition Commission of India, and other condition precedents customary to a transaction of this nature, the release added.

Nido has over Rs 4,804 crore of assets under management and operates a large network of branches, serving over 800 talukas (sub-districts) in India.

The Edelweiss scrip closed 9.25 per cent up at Rs 121.60 a piece on the BSE on Tuesday, as against 0.25 per cent jump on the benchmark.