Advent re-enters Aditya Birla Capital with ₹2,750 crore housing finance deal

The parent company will retain 85.7% of the shares. Advent, which was an investor of Aditya Birla Capital between 2020-2025, made the investment through its subsidiary Indriya Ltd. will direct you through.

The deal underscores growing foreign interest in India’s financial sector. In 2025, Sumitomo Mitsui Banking Corp. acquired 20% of Yes Bank for $1.58 billion, MUFG acquired 20% of Shriram Finance Ltd for $4.4 billion, Mizuho Securities acquired a majority stake in Avendus, and Emirates NBD agreed to acquire 60% of RBL Bank. ₹26,850 crore.

growth engine

Aditya Birla Housing Finance is among India’s top three housing finance companies in terms of incremental loan book growth. Its assets under management (AUM) have increased at a compound annual growth rate of 48% over the past three years. ₹42,204 crore as on December 31, 2025. It was stated that ABHFL maintained its gross stage 3 rate at 0.54% and net stage 3 rate at 0.23%.

“The proposed capital infusion will strengthen ABHFL’s financial foundation, enable deeper market penetration and enhance its ability to shape India’s inclusive and sustainable housing finance ecosystem,” Aditya Birla Group chairman Kumar Mangalam Birla said in a press release. he said.

The Advent deal is ABHFL’s first primary capital transfer. A year ago the company made a raise ₹830 crore through non-convertible bonds of the World Bank Group’s International Finance Corp., mostly for low- and middle-income housing loans and MSME loans. In May 2025, Aditya Birla Capital was also vaccinated ₹249 crore went into the unit.

Shweta Jalan, managing partner of Advent International, said the firm has seen “strong structural fluctuations” in India’s mortgage market driven by supportive government initiatives and a constructive regulatory framework. He added that Advent has a strong belief in ABHFL’s leadership and will support the company in its next phase of growth.

The deal comes at a time when housing finance companies (HFCs) are increasingly turning to non-housing loans to maintain margins and growth. Ratings agency Icra Ltd expects healthy earnings and growth for HFCs in FY26-27.

“Enforcement expects healthy 15-17% growth in assets under management for HFCs through FY 2026 and FY 2027,” the agency said in a January 2026 report. The report stated that growth in the non-housing loan segment has increased in the last few quarters. “Enforcement expects the share of NHLs to increase further in the near term due to competitive challenges in the mortgage segment and pressure on margins.”

The Economic Survey 2025-26, published on January 29, 2026, highlighted that the ratio of housing loans to GDP increased from 8% in FY15 to 11% in FY25. To improve access to housing finance, PMAY (Urban) credited demand-side measures such as interest subsidy, low interest rates and streamlined loan processes under the Affordable Housing Fund. Urban initiatives such as the Smart Cities Mission and the Urban Infrastructure Development Fund (UIDF) were also implemented during World War II. and III. It supported housing demand in tier-1 cities.