Piramal, TPG, Baring in race to acquire ICICI Home Finance

Q: Piramal Group, TPG Capital and Baring Private Equity Asia are in the race to acquire ICICI Home Finance Company, a subsidiary of India's largest private bank.

Dharmaja Patel, Mumbai

3rd November 2015

Real estate News in Mumbai

icici bank

piramal group

tpg capital

baring private equity asia

icici home finance

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Replies (3)

Hi everybody,
It is time to awake and take your own decision. Don't take India in Wrong direction to make more urban cyber-coolies and urban techie coolies. More Educated unemployed fighting for videshi or sarkari jobs and more. Only education to make these kids to help their villages and live locally. No need to wear videshi dress. Our country should focus on education.

Neha Srivastava, Delhi-NCR

4th November 2015

Comment

ICICI valued its assets around Rs 4400 crore. But a person directly involved in the bidding process valued these assets anywhere around Rs. 3000-3500 crore. It would be very surprised if the deal happens above this.

Vivek Kulkarni,

3rd November 2015

Comment

Hi Vivek,
Industry experts are saying that buyers are aggressively looking at the housing finance sector because of the overall shortage of homes in India and expectations that the government's plan to build smart cities will push up demand in urban and rural areas. The housing sector has grown at roughly 20% in the past 5 yrs, a pace that's expected to quicken in the coming yrs.

Shrikant Kejriwal, Mumbai

3rd November 2015

As per the latest report, ICICI Home Finance focuses on smaller cities and smaller home loans. The unit contributes to about 10% of the book value of the total home loans given by ICICI. Profit after tax of ICICI Home Finance decreased to Rs 1.98 billion in 2014-15 from Rs 2.23 billion a year earlier and was equivalent to 1.6% of the group's consolidated net profit.

Vivek Kulkarni,

3rd November 2015

Hi Dharmaja,
I have read that Parent ICICI Bank had been expecting a valuation of about Rs 4400 crore for the unit, which focuses on home loans in smaller cities.

Vivek Kulkarni,

3rd November 2015

Comment

Right Vivek,
The buyers have submitted non-binding bids in the 1st round on Friday. The bidding war and negotiations with ICICI Bank are set to begin in the 2nd or 3rd week of Novembe. ICICI Bank will also set the base price for the binding bids. Standard Chartered and ICICI Securities are advising the bank.

Dharmaja Patel, Mumbai

3rd November 2015