An investment vehicle backed by a major Middle Eastern sovereign wealth entity is in advanced discussions to acquire a minority stake in a leading Indian affordable housing finance firm, according to people familiar with the matter. The stake purchase is expected to involve a $200–225 million transaction (?1,750–2,000 crore) through a secondary sale of shares, equivalent to 10–12% equity in the lender, which went public in 2024. A formal announcement is anticipated soon.

The current shareholder declined to comment on the prospective buyer, while representatives of the investment entity did not respond to queries.

The housing finance company’s stock closed at ?496.90, giving it a market capitalization of ?21,469.03 crore. Over the past month, the stock has risen 12.11%, driven by expectations of the deal, and is up 18.63% year-to-date supported by strong financial performance. The lender recently reported a 19% year-on-year rise in net profit to ?237 crore for the quarter ended June.

Industry forecasts suggest a 17–18% compound annual growth rate over the next five years. The company’s current management and board are expected to remain unchanged following the transaction.

Under its existing ownership, the company’s assets under management have expanded significantly, reaching $3 billion, placing it well ahead of several competitors in the affordable housing finance segment.

The Middle Eastern region, known for multiple sovereign investment vehicles, has been actively deploying capital across diversified sectors as it positions itself as a global financial hub. In recent years, newly established investment platforms from the region have executed numerous transactions across industries and developed large-scale funds focused on climate, technology, and infrastructure, with substantial capital commitments from regional entities.

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