Weaver Services Acquires Capital India Home Loans for ₹267 Crore

Weaver Services Private Ltd, an affordable housing finance company founded by former HDFC employees, has announced it is acquiring Delhi-based Capital India Home Loans Pvt Ltd (CIHL) for ₹267 crore.

To fund this acquisition and expand its lending business, Weaver Services plans to raise up to ₹800 crore from private equity investors like Gaja Capital and Lok Capital. However, the acquisition still needs regulatory approval.

Founded by Satrajit Bhattacharya, the former head of investments and M&A at HDFC, Weaver Services is focused on acquiring a mid-sized housing finance company. After the acquisition, Bhattacharya will take on a non-executive role at the company.

“The capital will be used for both acquisition finance and growth. We will also consider more acquisitions in the same sector, for which we will seek additional capital,” Bhattacharya told Mint.

Weaver Services aims to introduce innovative home loan products specifically designed for women and self-employed individuals in the unorganised sector, particularly in Tier 2 and Tier 3 towns.

CIHL is a subsidiary of Capital India Finance Ltd (CIFL), a non-banking financial company that primarily focuses on loans against property. CIFL is part of Capital India Corp Pvt Ltd, which is led by Sumit K. Narvar, who also chairs the Noida-based real estate firm Trident Realty.

As of March 31, 2024, CIHL’s standalone loan portfolio was ₹388.68 crore, up from ₹348.06 crore the previous year, with secured loans making up about 94% of its portfolio. CIHL operates 31 branches across 10 states.

Since October 7, shares of Capital India Finance have surged 82%, closing at ₹266.95 on Wednesday on the BSE.