Multiples Alternatives along with former senior bankers will invest over Rs. 100 crore in Mumbai based Vastu Housing

Q: Local private equity fund Multiples Alternatives, along with some former senior bankers, will invest over Rs.100 crore in Mumbai based housing finance co.Vastu Housing Finance Corp.

Aveek Paul,

29th December 2015

Real estate News in Mumbai

affordable housing

multiples alternatives

vastu housing finance corp

private equity investors

pradhan mantri awas yojana

pmay

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Replies (3)

Hi folks,
I heard that this start-up, with a new management and strong capital base, will use technology to reach out to potential customers and made sure a smooth loan distribution. The company will now build the sales force, the team and branch network another time, and in its new incarnation, it is expected to have a loan book of Rs 6,000 crore by 2016.

Rajatrawal, Mumbai

29th December 2015

Comment

@Himani,
While the rest of 3 former bankers Pramod Bhasin, Samir Bhatia and Vikram Gandhi will own 15%, while 5% will be with the founders PH Ravikumar, former CEO of NCDEX, and Sandeep Menon, a former banker with Barclays and Standard Chartered.

bashir,

29th December 2015

Comment

Hi Bashir,
Multiples has pushed in about Rs 80 crore for this buyout. While the Vastu will provide loans up-to ticket sizes of Rs.50 lakh but its key focus will be in loans of ticket sizes between Rs.10 and Rs.15 lakh.

Gautam G,

29th December 2015

Yes, and Multiples Alternatives always tried to invest in a strong macro and a management team best positioned to build a sustainable business. Their strong interest in the mortgage finance class and they believe that the asset class will be a key beneficiary of the strong economic growth projected.

Himani,

29th December 2015

@Himani,
The fund is in the process of raising $600 million towards its 2nd fund. This will be the 1st deal from the new fund which saw a 1st close at $300 million earlier this year. The fund will soon announce its final close.

bashir,

29th December 2015

Hi Aveek,
This deal will test the growing interest of private equity investors in financial services companies, especially in housing finance companies, which is considered a safe bet among the other risky lending businesses.

bashir,

29th December 2015

Comment

I am agree with it. As per the report, Vastu Housing Finance Corp is about to to own 95% stake in the start-up firm relaunched by senior bankers. Multiples has already committed to invest Rs.400 crore in the next 4 years to grow the business.

Himani,

29th December 2015