Aadhar Housing Finance Limited , a prominent player in India's housing finance sector, is set to undergo a significant ownership change. The company's promoter, BCP Topco VII Pte. Ltd., has entered into a share purchase agreement with AXDI LDII SPV 1 LTD to sell a substantial stake in the company.

Key Details of the Transaction

• Sale Agreement: BCP Topco VII Pte. Ltd. has agreed to sell 44,139,236 equity shares of Aadhar Housing Finance to AXDI LDII SPV 1 LTD.
• Share Price: The transaction is valued at Rs 425.00 per share.
• Date of Agreement: The share purchase agreement was signed on July 29.

Regulatory Approvals Required

The completion of this transaction is subject to several regulatory approvals, including:

1. Reserve Bank of India
2. Competition Commission of India
3. National Housing Bank
4. Indian Bank

Impact on Ownership Structure

Upon completion of the transaction:

• AXDI LDII SPV 1 LTD will be classified as a public shareholder of Aadhar Housing Finance.
• The buyer is investing as a financial investor with no existing relationship to the company.

Transaction Timeline and Governance

• The agreement will automatically terminate if the closing does not occur within 15 months from the date of signing.
• The share purchase agreement is governed by English law.

Management and Control

It's important to note that this transaction will not impact the management or control of Aadhar Housing Finance Limited. The company's operations are expected to continue under the current leadership structure.

Annual General Meeting Highlights

Coinciding with these developments, Aadhar Housing Finance held its 35th Annual General Meeting (AGM) on July 29. Key points from the AGM include:

• The meeting was conducted through video conferencing due to ongoing health and safety considerations.
• All proposed resolutions were passed with the requisite majority, including:
  • Reappointment of Mr. Prateek Roongta as a Non-Executive Director
  • Appointment of Mr. Raj Vikash Verma as an Independent Director for a five-year term
• The company also received shareholder approval for increased borrowing powers and the issuance of debentures.

Market Response

Following these announcements, there was a significant increase in the trading volume of Aadhar Housing Finance's shares. The company has assured stakeholders that it remains compliant with all regulatory disclosure requirements and will continue to provide updates on any material developments.

As Aadhar Housing Finance navigates this ownership transition, the focus remains on maintaining its strong position in the housing finance market while ensuring transparency and compliance with all regulatory standards.

Aadhar Housing Finance , a prominent player in India's housing finance sector, saw its shares surge by 7.33% to Rs 533.00 on reports of advanced talks with an Abu Dhabi-backed investment vehicle for a significant minority stake acquisition. This development has caught the attention of investors and market analysts alike, highlighting the growing interest of international investors in India's financial services sector.

Potential Investment Details

The potential investment, estimated to be in the range of $200-225 million, is expected to secure a 10-12% stake in Aadhar Housing Finance through a secondary share sale. The investment vehicle involved in these talks is reportedly backed by Abu Dhabi's ADQ and Sheikh Tahnoon bin Zayed al-Nahyan, indicating a strong interest from UAE-based investors in the Indian financial market.

Market Performance

The news of the potential investment has had a significant impact on Aadhar Housing Finance's stock performance:

• The stock price surged by 7.33% to Rs 533.00
• It touched a 52-week high of Rs 538.00 during trading
• The stock is currently trading above all key moving averages
• The Relative Strength Index (RSI) stands at 60.5, indicating neutral to bullish momentum

This positive market reaction suggests that investors are optimistic about the potential benefits of the Abu Dhabi investment for Aadhar Housing Finance.

Company Background

Aadhar Housing Finance, backed by global investment firm Blackstone, made its debut on the stock market earlier this year. The company has been attracting attention from both domestic and international investors due to its strong position in the affordable housing finance segment.

Blackstone's Commitment

It's worth noting that this potential investment follows a larger capital commitment by Blackstone. The global private equity giant recently transferred its three-fourths shareholding in Aadhar Housing Finance into a continuation vehicle, demonstrating a $2 billion commitment to the company. This move by Blackstone underscores the long-term potential they see in Aadhar Housing Finance and the Indian housing finance sector as a whole.

Looking Ahead

While a formal announcement regarding the Abu Dhabi investment is expected in the coming weeks, the market's positive reaction indicates that such a deal could bring significant benefits to Aadhar Housing Finance. The potential influx of foreign capital could strengthen the company's financial position, potentially enabling it to expand its operations and capture a larger share of India's growing housing finance market.

As the story develops, investors and industry observers will be keenly watching for the official announcement and any subsequent strategic moves by Aadhar Housing Finance. The company's ability to attract international investment could set a precedent for other players in India's financial services sector, potentially opening doors for more foreign capital inflows in the future.