Multiples Alternatives, former senior bankers to invest over Rs 100 crore in Mumbai-based Vastu Housing
MUMBAI: Local private equity fund Multiples Alternatives, along with a clutch of former senior bankers, will invest over Rs 100 crore in Mumbai-based housing finance firm Vastu Housing Finance Corp to own 95% stake in the start-up firm relaunched by senior bankers.
This underscores the growing interest of private equity investors in financial services companies, especially in housing finance companies, which is considered a safe bet among the other riskier lending businesses.
Multiples, which will own 80% stake in the firm, has already committed to invest roughly Rs 400 crore in the next four years to grow the business, while three former bankers — Pramod Bhasin, Samir Bhatia and Vikram Gandhi — will own 15%, while 5% will be with the founders PH Ravikumar, former CEO of NCDEX, and Sandeep Menon, a former banker with Barclays and Standard Chartered.
“Multiples has pumped in about Rs 80 crore for this buyout,” said a person involved in the deal. Vastu will provide loans up to ticket sizes of Rs 50 lakh, but its key focus will be in loans of ticket sizes between Rs 10 and Rs 15 lakh.
“At Multiples, we have always tried to invest behind a strong macro and a management team best positioned to build a sustainable business,” said Renuka Ramnath, founder and CEO of Multiples. “We continue to have a strong interest in the mortgage finance space and believe that the asset class will be a key beneficiary of the strong economic growth projected, going forward.”
Read full article: Economic Times
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