Capital India Finance Sells Housing Finance Subsidiary to Weaver Services for Rs 267 Crore
Capital India Finance Ltd (CIFL), a small-cap NBFC focusing on MSMEs, has sold its housing finance subsidiary, Capital India Home Loans Limited (CIHL), to Weaver Services Private Limited for Rs 267 crore, as stated in a company filing to the stock exchanges. Weaver Services is supported by a team of former HDFC employees.
To fund this acquisition, Weaver Services is raising capital from prominent private equity investors such as Gaja Capital and Lok Capital, aiming to secure up to Rs 800 crore, according to a company release.
CIFL, a modern player in the affordable housing sector, highlighted that the sale is part of its strategic shift towards focusing on its core businesses. The transaction is still subject to regulatory approval.
“The capital released from this sale will enable Capital India to expand further, leveraging strong equity capitalization and improving operational performance,” said Pinank Jayant Shah, CEO of Capital India Finance Limited.
Upon receiving regulatory approval and finalizing the acquisition, Weaver Services plans to introduce a range of innovative home loan products tailored for citizens of Bharat.
“Our primary goal is to empower self-employed individuals in the unorganized sector, especially in Tier 2 and Tier 3 towns. Weaver is dedicated to promoting financial inclusion, with a special focus on providing access to women borrowers who often face challenges in traditional financial systems,” the company’s release stated.
Weaver Services comprises a team of finance experts, including Satrajit Bhattacharya, who previously led the Investments and M&A division at HDFC Limited, along with other former HDFC executives.