Adani looks to set up housing finance firm
By Shilpy Sinha
MUMBAI: Billionaire Gautam Adani is the latest to jump into the affordable mortgage lending business, with Adani Enterprises, the holding company of the Adani Group, looking to set up a housing finance company that will offer home loans through realty developers and will also lend directly to retail customers.
After having tried to acquire a housing finance company in the past year, the $12-billion group has applied for a housing finance licence with the National Housing Bank.
“Adani has applied for a licence to set up a housing finance company,” said a source close to the development. “After the company got its non-banking finance business, it is looking to explore the retail and housing space.” Adani did not respond to an email till the time of going to press. Adani had incorporated Adani Housing Finance Ltd, a private company in September 2017, which had applied for a housing finance licence late last year.
There’s a huge potential for setting up housing finance companies with India Ratings anticipating a demand for 25 million homes over FY17-FY22 in the medium and lower income group categories.
“We anticipate large corporates entering the space either by setting up a new company or by buying stake in an existing one,” said Mahesh Singhi, founder and managing director, Singhi Advisors. “For many large corporates with presence in non-banking finance sector, it is seen as a natural progression to assess opportunities within the retail lending space.”
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Via:: Economic Times – Stocks