IFC may invest $4-5Mn in AU Housing Finance Pvt Ltd.
AU Housing Finance Pvt Ltd is being set up as PPP model by National Housing Bank, Government of Rajasthan and AU Financiers Ltd. This housing finance company will provide home loans in the Rajasthan and other state where AU operates. The company will be headquartered in Jaipur with branches across Rajasthan and other states.
AU Financiers is raising $50Mn from Warburg Pincus. This deal will also provide a partial exit to Motilal Oswal PE.
Incorporated in 1996 by Mr. Sanjay Agarwal, Au Financiers operates in the asset-financing business, primarily in CV financing. The company has a wide reach in Rajasthan, Maharashtra and Gujarat and expanding its presence in Punjab, Madhya Pradesh, Goa and Chhattisgarh. As on March 2011, The company has AUM of R12.66bn.
In February 2008, Au Financiers raised R20Cr from India Business Excellence Fund.
Further in March 2010, IFC, Motilal Oswal's - India Business Excellence Fund, and India Business Excellence Fund I, together invested R55Cr in Au Financiers.
Others operating in the business of providing small home loans to people from rural and semi urban areas include Mahindra Rural Housing Finance Ltd, Micro Housing Finance Corporation Limited, Muthoot Housing Finance Ltd, Repco Home Finance, Maharishi Housing Development Finance Corporation and Home First Finance Company India Pvt. Ltd.
Some of these entites have managed to raise PE funding as well. Last year in June, Home First Finance Company raised funding from Bessemer venture Partners. Before that in March, Micro Housing Finance raised R19Cr in its second round of funding from its existing investors Indian Financial Inclusion Fund and the Michael & Susan Dell Foundation. It had raised R6Cr from them in its first round of funding in 2009.
After five months of negotiations and competitive bidding, the global PE funds Warburg Pincus and General Atlantic, emerge as the frontrunner to buy a majority stake in brokerage and financial services firm, Sharekhan at a deal valued between R2,000- 2,400 Cr.