Carlyle to Acquire Majority Stake in Nido Home Finance for $252 Million.
Carlyle Group.
Carlyle Group acquires majority stake in Nido Home Finance: In a strategic move to bolster the affordable housing finance sector in India, CA Sardo Investments, an affiliate of The Carlyle Group, has announced the acquisition of a 73% majority stake in Nido Home Finance for ₹2,100 crore (approximately $252 million). The transaction aims to infuse fresh capital and operational expertise into Nido, positioning the company for accelerated growth in the expanding affordable housing market, especially in rural and semi-urban areas.
The acquisition involves both a secondary purchase of equity shares and a primary subscription to new equity shares and warrants from existing shareholders of Nido Home Finance. These shareholders include Edelweiss Financial Services Limited, Edelweiss Rural & Corporate Services Limited, and Edel Finance Company Limited.
The deal is expected to enhance Nido’s growth trajectory by providing necessary financial backing and enhancing operational capabilities, allowing it to broaden its reach in affordable housing finance. The transaction also aligns with Edelweiss’s long-term strategy to unlock value from its subsidiaries while reinforcing Nido’s position in the housing finance sector.
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Nido Home Finance.
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Legal Representation and Advisory
The legal team representing CA Sardo Investments in this landmark acquisition is led by Trilegal, with prominent figures such as Abhishek Guha (Partner), Tanya Uppal (Partner), and Mahesh Wasadikar (Partner) spearheading the transaction. Other key members of the team included Yash Modi and Shreya Gokhale (Senior Associates), along with associates Vishakha Dube and Vijay Chawla.
The competition law aspects of the transaction were advised by Gauri Chhabra (Partner), supported by Gargi Yadav (Counsel) and Eesha Sheth (Senior Associate), while banking law advice was provided by Ameya Khandge (Partner) and his team.
Anuj Berry (Partner) and Shruti Rajan (Partner), along with Nishith Mehta (Lead – Risk & Compliance) and Rohtash Singh (Director), handled compliance and regulatory issues, while Kirti Balasubramanian (Partner) provided advice on intellectual property matters. The technology, media, and telecommunications aspects of the deal were managed by Jishnu Sanyal (Partner) and his team.
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Edelweiss and Carlyle’s Strategic Partnership
AZB & Partners is advising Edelweiss Group and Nido Home Finance on the deal. The AZB team, including senior partners Ashwath Rau and Vipul Jain, and associates Aditi Shukla and Saras Muzumdar, played a crucial role in structuring the transaction.
For Carlyle, the deal underscores its ongoing commitment to India’s high-growth housing finance sector, leveraging more than two decades of experience in India’s financial services industry. The investment also adds to Carlyle’s existing portfolio of housing finance platforms, which includes significant stakes in PNB Housing Finance Limited and Housing Development Finance Corporation.
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Long-Term Impact on the Housing Finance Sector in India
This acquisition reflects a broader strategy to improve financial inclusion in India, particularly in underserved rural and semi-urban markets. With the backing of Carlyle’s expertise and capital, Nido Home Finance is expected to become a key player in the affordable housing finance sector, providing much-needed solutions for India’s growing population.
For Edelweiss, the partnership will help unlock additional value from its investments while supporting Nido’s strategic expansion. The deal also signals a continued focus on the housing finance sector, with long-term growth potential in both urban and rural markets.
As the affordable housing sector continues to see increasing demand, especially amidst India’s rapid urbanization, this deal positions both Carlyle and Edelweiss to capture a significant share of a high-growth market.
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