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Capital India Finance Ltd (CIFL), a small-cap NBFC specializing in MSMEs, has sold its housing finance subsidiary, Capital India Home Loans Limited (CIHL), to Weaver Services Private Limited for INR 267 crore. Weaver, backed by former HDFC employees, plans to secure up to INR 800 crore in funding from private equity firms to finance the acquisition. CIFL aims to realign its focus on core businesses, with CEO Pinank Jayant Shah stating that the sale will bolster capital for growth. After regulatory approvals, Weaver will launch innovative home loan products targeting self-employed individuals in Tier 2 and Tier 3 towns, emphasizing financial inclusion for women borrowers.
Capital India Finance Ltd (CIFL), a small-cap non-banking financial company (NBFC) focused on MSMEs, has sold its housing finance subsidiary, Capital India Home Loans Limited (CIHL), to Weaver Services Private Limited for INR 267 crore, as reported in a filing sent to the stock exchanges. Weaver Services is backed by former HDFC employees. To fund this acquisition, Weaver is seeking capital from prominent private equity firms, including Gaja Capital and Lok Capital, aiming to secure up to INR 800 crore in financing, according to a company release. Advertisement
CIFL is recognized as a new-age player in the affordable housing sector. The company stated in its communication to the exchanges that this transaction is part of its strategic realignment to concentrate on its core businesses. The deal is pending regulatory approval. Pinank Jayant Shah, the Chief Executive Officer of Capital India Finance Limited, mentioned that the capital released from this sale would enable Capital India to expand, supported by strong equity capitalization and improving operational metrics.
Once the necessary regulatory approvals are obtained and the acquisition is finalized, WEAVER plans to introduce a range of innovative home loan products designed specifically for the citizens of Bharat. According to a company release, the primary focus will be on empowering self-employed individuals in the unorganized sector, especially in Tier 2 and Tier 3 towns. WEAVER aims to promote financial inclusion, with a particular emphasis on supporting women borrowers, who often encounter challenges in accessing traditional financial services.
WEAVER comprises a team of finance professionals, including Satrajit Bhattacharya, who previously led the Investments and M&A function at HDFC Limited, along with other former HDFC executives.
The acquisition marks a significant step for both CIFL and Weaver Services. While CIFL enhances its focus on core operations, Weaver is poised to make a meaningful impact in the affordable housing sector by introducing tailored financial solutions. This move highlights the importance of financial inclusion in underserved communities across Bharat.
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