Westbridge Crossover Fund LLC is set to make a significant move in the Indian financial sector by divesting its entire stake in Aptus Value Housing Finance India Ltd . The fund plans to sell 8.23 crore shares, representing a 16.5% stake in the company, through an open market transaction valued at approximately Rs 2,600 crore.

Stake Sale Details

The planned exit by Westbridge Crossover Fund involves selling its shares at Rs 316.00 per share, which represents a 5% discount to the current market price of Rs 332.15. This move comes after the fund held a 16.19% stake in Aptus Value Housing Finance as of June 2023.

Recent Divestment Trend

This latest development follows a series of stake sales by the company's promoter:

• A 12.61% stake sale in June 2023
• A 4.96% stake sale in May 2021

These consecutive divestments indicate a shifting ownership structure within Aptus Value Housing Finance.

Company Growth Prospects

Despite the ongoing stake sales, Aptus Value Housing Finance maintains an optimistic outlook on its future performance:

• The company expects a lending growth of 20-22% in the near term
• A robust 29% year-on-year growth is anticipated over the next two to three years

Factors Supporting Growth

P Balaji, the Managing Director of Aptus Value Housing Finance, highlighted two key factors that are expected to bolster the company's growth:

1. Recent Repo Rate Reduction: The Reserve Bank of India's decision to lower the repo rate is seen as a positive development for the company.

2. Upgraded Credit Rating: CARE Ratings has recently upgraded the company's credit rating, which is expected to have a favorable impact.

These factors, according to Balaji, will enable Aptus Value Housing Finance to access funds at more affordable terms, potentially driving its expansion and lending activities.

As the financial landscape continues to evolve, the stake sale by Westbridge Crossover Fund and Aptus Value Housing Finance's growth projections will likely draw significant attention from investors and industry observers alike.

Aptus Value Housing Finance India Limited , a leading affordable housing finance company, has reported mixed financial results for the first quarter, showing strong revenue growth but also an increase in non-performing assets.

Financial Highlights

Asset Quality

While the company showed strong financial growth, there was a noticeable increase in Non-Performing Assets (NPAs):

Analysis

Aptus Value Housing Finance India demonstrated robust revenue growth and profitability in the first quarter compared to the same period last year. The company's consolidated net profit increased by 29.40% year-over-year, while revenue saw a significant jump of 31.60%.

However, the rise in both Gross and Net Non-Performing Assets indicates a deterioration in asset quality. This increase in NPAs could be a cause for concern and may require close monitoring in the coming quarters.

Conclusion

While Aptus Value Housing Finance India has shown strong financial performance in terms of revenue and profit growth, the rising NPAs present a mixed picture. The company will need to focus on maintaining asset quality while continuing its growth trajectory in the upcoming quarters.