Centrum Housing Finance Ltd. To Raise INR 190 crore of Equity Capital from a Fund Managed by Morgan Stanley Private Equity Asia
Centrum Housing Finance Limited (“CHFL” or “the Company”), a retail focused, affordable housing finance player and part of the Centrum Group, is pleased to announce that it has signed an agreement to raise INR 190 crore of equity funds from a fund managed by Morgan Stanley Private Equity Asia. The fund will acquire a significant minority stake in the Company.
CHFL, which started operations in 2017, has 36 branches, and is present across 6 states in Central and Western India, serving over 3,500 customers. The Company primarily offers financing to individuals for buying and building houses in the affordable housing segment. The Company has disbursed loans
amounting to over INR 500 crore and operates across Gujarat, Madhya Pradesh, Rajasthan, Maharashtra, Chhattisgarh, and Delhi.
During the last three years, the Company has significantly expanded its branch network, built a strong
underwriting team, and secured fresh borrowing relationships from banks. The proceeds from this fund
raise will help the Company expand its operations and enter new geographies.
The fund managed by Morgan Stanley Private Equity Asia will be the first external institutional investor
in CHFL, which is promoted by Centrum Capital Limited. The Company is led by industry veteran Sanjay
Shukla, who has 30 years of HFC/retail lending experience and previously headed Tata Capital’s Housing Finance arm and Cent Bank Home Finance. EY acted as the exclusive investment banking advisor to the transaction.