Kolkata: Centrum Capital will be selling the entire 56.4% stake in its housing finance subsidiary to Gaja Capital-backed Weaver Service for Rs 430 crore, the company announced Friday.
Centrum has entered into a share purchase agreement Friday to transfer the entire stake Centrum Housing Finance Ltd (CHFL).
Economic Times was first to report this in its edition dated August 8.
The agreement while approved by Centrum’s Board, is subject to its shareholders, regulatory and other commercial third party approvals, the company said in a regulatory filing to stock exchnages. The transaction is expected to be completed in about six months, Centrum said.
“Our housing finance business has seen sustained profitable growth since inception. We are happy that we have found an ambitious and highly capable platform – Weaver Services, backed by marquee investors like Premji Invest, Lightspeed Ventures and Gaja Capital, that will drive and significantly scale
CHFL’s operations going forward,” Centrum Group executive chairman Jaspal Bindra was quoted as saying in a statement issued by the company.
Weaver Services earlier this week raised $170 million in a funding round led by Lightspeed and Premji Invest while existing investor Gaja Capital also participated. The proceeds will be used to fund this acquisition.
The new platform, incorporated only in October last year, will also aquire another 18.6% stake in the housoing finance company from associate companies of the Centrum group and its employees for another Rs 170 crore, taking the entire deal value to Rs 600 crore, people familar with the matter said.
Centrum Housing Finance, active in the affordable housing finance space, has about Rs 1640 crore assets under management at the end of June. It offers home loans, self-construction loans, home improvement loans and loans against property.
“We are very humbled that the Centrum group has entrusted us with an asset they built with a lot of care,” said Satrajit Bhattacharya, founder of Weaver Services.
E&Y was the financial advisor to CHFL and J Sagar Associates were the legal advisors to the transaction. Whereas for Weaver Services, KPMG was the tax advisor and Khaitan & Co were the legal advisors.
Centrum has entered into a share purchase agreement Friday to transfer the entire stake Centrum Housing Finance Ltd (CHFL).
Economic Times was first to report this in its edition dated August 8.
The agreement while approved by Centrum’s Board, is subject to its shareholders, regulatory and other commercial third party approvals, the company said in a regulatory filing to stock exchnages. The transaction is expected to be completed in about six months, Centrum said.
“Our housing finance business has seen sustained profitable growth since inception. We are happy that we have found an ambitious and highly capable platform – Weaver Services, backed by marquee investors like Premji Invest, Lightspeed Ventures and Gaja Capital, that will drive and significantly scale
CHFL’s operations going forward,” Centrum Group executive chairman Jaspal Bindra was quoted as saying in a statement issued by the company.
Weaver Services earlier this week raised $170 million in a funding round led by Lightspeed and Premji Invest while existing investor Gaja Capital also participated. The proceeds will be used to fund this acquisition.
The new platform, incorporated only in October last year, will also aquire another 18.6% stake in the housoing finance company from associate companies of the Centrum group and its employees for another Rs 170 crore, taking the entire deal value to Rs 600 crore, people familar with the matter said.
Centrum Housing Finance, active in the affordable housing finance space, has about Rs 1640 crore assets under management at the end of June. It offers home loans, self-construction loans, home improvement loans and loans against property.
“We are very humbled that the Centrum group has entrusted us with an asset they built with a lot of care,” said Satrajit Bhattacharya, founder of Weaver Services.
E&Y was the financial advisor to CHFL and J Sagar Associates were the legal advisors to the transaction. Whereas for Weaver Services, KPMG was the tax advisor and Khaitan & Co were the legal advisors.
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