Weaver Services has signed definitive agreements to acquire 100% stake in Capital India Home Loans Ltd for a total consideration of Rs 267 million ($31.7 million).
The strategic acquisition aims to strengthen Weaver’s presence in the affordable housing financing sector, particularly catering to underserved markets in India.
The transaction is subject to regulatory approvals and both companies have expressed confidence in the deal’s positive impact on the housing finance landscape.
Focus on affordable housing
With this acquisition, Weaver Services aims to introduce innovative financial products, specifically targeted at self-employed people and the unorganized sector, especially in tier 2 and 3 cities.
The company’s primary objective will be to improve financial inclusion, especially for women borrowers, by offering affordable and accessible home loan solutions.
The move is designed to meet growing demand for housing finance in smaller towns and cities, where formal credit channels are often limited.
Leadership and strategic vision.
Weaver Services is led by experienced financial professionals, many of whom have previously held leadership positions at HDFC.
The team, led by Satrajit Bhattacharya, former head of investments and mergers at HDFC, brings a wealth of experience to this new venture.
While Bhattacharya will take on a non-executive role following the acquisition, he will continue to guide the company’s strategic direction.
Financing and expansion plans.
To support the acquisition and drive future growth, Weaver Services is in the process of raising up to Rs 800 crore from private equity funds including Gaja Capital and Lok Capital.
This capital infusion will enable the company to expand its operations across India, launch new financial products and enhance its technological and operational capabilities.
With these funds, Weaver Services aims to position itself as a major player in the affordable housing financing market.
Keki Mistry, former Vice Chairman and Managing Director of HDFC Limited, shared, “I am happy to see a team of former colleagues and partners come together to establish a housing finance company dedicated to addressing the needs of an underserved segment of the society. “This initiative will be instrumental in meeting the urgent housing needs of the low-income groups and the Economically Weaker Section (EWS).”
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