Signals entry into housing finance business
L&T Finance Holdings Limited (LTFH) has signalled its entry into housing finance business with the signing of definitive agreement to acquire Indo Pacific Housing Finance (IPHF), a small-sized housing finance company.
The deal will be completed with the receipt of appropriate regulatory approvals.
With a loan book size of Rs.193.50 crore, IPHF has 34 branches, primarily in the southern and western regions. This acquisition will synergise with LTFH's existing financial services businesses by deepening and widening its services. LTFH believes that its brand and reach will enable it to build a robust housing finance business. It is the intent of LTFH to widen the presence of IPHF geographically and by customer segments.
N. Sivaraman, President & Wholetime Director of LTFH, said, “With this acquisition, LTFH has taken the first step to go beyond its asset finance orientation into the consumer finance domain. We chose the route of acquiring a small operating business as our route to enter this market, because it brings with it a fully functional operating platform. It is registered with National Housing Bank (NHB) and has a well experienced team of mortgage experts.”
Y.M. Deosthalee, Chairman & Managing Director, LTFH, said that L&T offered the best home and property solutions to consumers and was also the preferred constructor of choice among most leading developers. “We see the mortgage and loan against property business as the logical next step in building the L&T franchise in the home owners' market.”
LTFH is a listed entity since August 2011, having raised Rs.1,575 crore in its initial public offering (IPO).