Carlyle to buy Edelweiss’ Nido Home Finance for ₹2,100 crore
US-based asset manager The Carlyle Group Inc. will acquire the mortgage unit of Edelweiss Financial Services Ltd, Nido Home Finance Ltd. ₹The Rashesh Shah-led financial services firm on Monday informed the stock exchanges of a deal worth Rs 2,100 crore.
The deal will see investment funds affiliated with Carlyle Asia Partners (CA Sardo Investments and Aditya Puri’s family office Salisbury Investments Pvt.) acquire a 45% stake in Nido from Edelweiss through a secondary acquisition and make a primary equity injection. ₹1,500 crore.
Collectively, both funds will acquire a majority stake in Nido through a mix of shares and warrants.
Aditya Puri, former managing director and managing director of HDFC Bank, is a senior advisor to Carlyle’s Asia private equity team.
Once completed, these funds will hold approximately 73% of Nido on a fully diluted basis.
With the secondary transaction, Edelweiss will sell 31.2 million shares ₹602 crore. as part of ₹With a primary infusion of 1,500 crore, 25.7 million new shares will be issued to CA Sardo Investments and 185,000 to Salisbury. Both issues will take place on: ₹193 per share.
CA Sardo and Salisbury will also receive 514 million and 369,000 new warrants, respectively. ₹193 each.
The issue price of the shares represents a 73% premium to the closing price of the stock on the previous trading day.
The company said Edelweiss could also receive an upside, depending on Carlyle achieving returns above a certain threshold.
The deal is subject to regulatory approvals and is expected to be completed by July 31, 2026, Edelweiss said.
AZB & Partners served as legal advisor to Edelweiss and Trilegal served as legal advisor to Carlyle.
In fiscal year 2024-25, Nido contributed 5.5% to Edelweiss’ top-line revenue or ₹ 521 crore and 14% of the company’s net worth.
Win-win-win
The transaction creates a “win-win-win” for all stakeholders, the company said in its presentation to investors. According to Edelweiss, this agreement furthers its goal of creating value. For Nido, this strengthens growth momentum through the infusion of fresh capital. And for Carlyle, this gives them entry into India’s housing finance sector.
“We are excited to partner with Edelweiss to support the next phase of Nido’s growth journey,” said Sunil Kaul, partner at Carlyle and Asian financial services industry leader. “Housing remains a critical national priority for India and we have strong belief in the growth potential of the housing finance sector.”
Founded in 2010, Nido provides home loans to customers in the affordable housing and mass market segments. It serves over 800 talukas in India and currently manages assets worth ₹4,804 crore.
This is the second mortgage deal in a week. On February 3, private equity firm Advent International announced that it would acquire 14.3% stake in Aditya Birla Housing Finance Ltd. ₹The company is valued at 2,750 crore ₹19,250 crore by post.
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 growth in assets under management of HFCs at 15-17% during 2025-26 and 2026-27,” 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, released on January 29, 2026, highlighted that the share of housing loans in gross domestic product (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.
