Centrum Group Nears Housing Finance Subsidiary Sale
Real Estate

Centrum Group Nears Housing Finance Subsidiary Sale

The Centrum Group is expected to finalise the sale of its housing finance subsidiary by the end of this fiscal year. The company is in advanced talks with five to six investors, considering both a full sale or partial monetisation.

Centrum Housing Finance, with a net worth of ?4.5 billion and assets under management of ?15 billion, is seeking a valuation of around ?13 billion, slightly below the market capitalisation of its parent company, Centrum Capital.

"We are progressing with final due diligence, and discussions now hinge on the company's valuation," said Jaspal Bindra, Executive Chairman of Centrum Group. The group holds a 60% stake in the mortgage lender, while Morgan Stanley owns 25%, with the remaining shares held by employees and others.

The sale process has been in the works since last year when Centrum engaged EY to explore potential investors. The final decision, whether it involves a full acquisition or a majority or minority stake sale, will depend on the valuation and counterparty agreement.

Centrum transferred all its other lending businesses, except housing finance, to Unity Small Finance Bank in 2022, a bank 51% owned by the group. The housing finance business remained separate due to Morgan Stanley’s partial ownership. In December 2022, Centrum expanded its reach by acquiring the business of National Trust Housing Finance (Natrust), entering the southern market.

The sale is expected to be finalised before the end of the current financial year, with investor interest ranging from full acquisition to minority stake sales.

The Centrum Group is expected to finalise the sale of its housing finance subsidiary by the end of this fiscal year. The company is in advanced talks with five to six investors, considering both a full sale or partial monetisation. Centrum Housing Finance, with a net worth of ?4.5 billion and assets under management of ?15 billion, is seeking a valuation of around ?13 billion, slightly below the market capitalisation of its parent company, Centrum Capital. We are progressing with final due diligence, and discussions now hinge on the company's valuation, said Jaspal Bindra, Executive Chairman of Centrum Group. The group holds a 60% stake in the mortgage lender, while Morgan Stanley owns 25%, with the remaining shares held by employees and others. The sale process has been in the works since last year when Centrum engaged EY to explore potential investors. The final decision, whether it involves a full acquisition or a majority or minority stake sale, will depend on the valuation and counterparty agreement. Centrum transferred all its other lending businesses, except housing finance, to Unity Small Finance Bank in 2022, a bank 51% owned by the group. The housing finance business remained separate due to Morgan Stanley’s partial ownership. In December 2022, Centrum expanded its reach by acquiring the business of National Trust Housing Finance (Natrust), entering the southern market. The sale is expected to be finalised before the end of the current financial year, with investor interest ranging from full acquisition to minority stake sales.

Next Story
Infrastructure Urban

NBCC bags construction order worth Rs 5 Bn

NBCC India said it has bagged a construction order worth Rs 5 billion from the Bureau of Indian Standards. As per the order, NBCC will construct buildings at BIS headquarters in New Delhi, central laboratory, Sahibabad, National Institute of Training for standardisation, Noida, Northern Regional Laboratory, Mohali and Bangalore Branch Laboratory, Bengaluru. On Monday, November 4, the company said its subsidiary Hindustan Steelworks Construction Ltd (HSCL) bagged work orders worth Rs 650 million in Bengaluru. As per the order, Hindustan Steelworks Construction will undertake development work o..

Next Story
Infrastructure Urban

India formally sent LoI to host 2036 Olympics

India took a significant step toward potentially hosting the 2036 Olympic and Paralympic Games. On October 1st, the Indian Olympic Association (IOA) officially submitted a Letter of Intent to the International Olympic Committee's (IOC) Future Host Commission, sources told news agency IANS. This action follows repeated expressions of interest from Indian Prime Minister Narendra Modi, who sees the Games as a potential boon for the nation. "Prime Minister Narendra Modi's vision of hosting the Olympic and Paralympic Games in India in 2036 has taken a significant step forward," a source stated. Th..

Next Story
Infrastructure Energy

NTPC, ONGC collaborate on green energy

In a significant move towards renewable energy, Maharatna PSUs NTPC and ONGC have partnered to form a 50:50 Joint Venture Company (JVC) through their respective green energy subsidiaries, NTPC Green Energy Ltd. (NGEL) and ONGC Green Energy Ltd. (OGL). The collaboration aims to expand their footprint in the renewable energy sector, encompassing a range of green technologies and projects, from solar and wind energy to green hydrogen and sustainable aviation fuel. The formal Joint Venture Agreement was signed on February 7, 2024, during India Energy Week, followed by approvals from the Departmen..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000