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Global private equity firm The Carlyle Group has agreed to acquire a majority stake in Nido Home Finance, the housing finance arm of Edelweiss Financial Services, through a mix of secondary stake purchase and fresh capital infusion. The transaction, valued at around INR 2,100 crore or USD 230 million, will result in Carlyle entities holding nearly 73% ownership on a fully diluted basis. The deal also includes participation from Aditya Puri's family office and is subject to multiple regulatory approvals.
The Carlyle Group has reached an agreement to acquire a controlling stake in Nido Home Finance Ltd, the housing finance subsidiary of Edelweiss Financial Services Ltd, marking a significant transaction in India's home loan sector. The deal involves funds managed by Carlyle Asia Partners acquiring a 45% stake from Edelweiss through a secondary transaction, along with a primary capital infusion of INR 1,500 crore into Nido. The overall transaction value is estimated at about INR 2,100 crore, or roughly USD 230 million, and will give Carlyle-affiliated entities close to 73% ownership on a fully diluted basis. Advertisement
The investment consortium includes CA Sardo Investments and Salisbury Investments Pvt. Ltd, the family office of former HDFC Bank managing director and chief executive officer Aditya Puri. Puri, who currently serves as a senior adviser to Carlyle's Asia private equity business, is participating in the transaction as an investor. Edelweiss will continue to hold a meaningful minority stake in Nido Home Finance following the completion of the deal.
Nido Home Finance, established in 2010, focuses primarily on affordable and mass-market housing loans, with a strong presence in semi-urban and rural markets. The company operates across more than 800 talukas and had assets under management of approximately INR 4,804 crore at the end of the last financial year. The fresh capital is expected to support balance sheet growth and enable Nido to expand its lending operations in regions where formal housing credit penetration remains relatively low.
The transaction is subject to approvals from the Reserve Bank of India, the National Housing Bank, and the Competition Commission of India. The equity shares involved in both the primary issuance and secondary sale have been priced at INR 193 per share. Legal advisers for the transaction included AZB & Partners for Edelweiss and Trilegal for Carlyle.
For Edelweiss Financial Services, the transaction aligns with its ongoing strategy to unlock value from its subsidiaries and bring in long-term capital partners. Over the past few years, the group has been restructuring its businesses under its Edelweiss 3.0 strategy, focusing on sharper capital allocation and operational discipline. The deal also reflects continued private equity interest in India's housing finance space, particularly in lenders catering to affordable housing demand outside large urban centres.
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