Aditya Birla Capital Limited and Aditya Birla Housing Finance Limited said their boards have approved a proposal for a primary capital infusion of Rs. 2,750 crore ($304.3 million) into Aditya Birla Housing Finance Limited (ABHFL), the housing finance subsidiary of Aditya Birla Capital. The investment is set to be made by Indriya Limited, an entity of Advent International, and would bring a new minority shareholder into ABHFL while keeping Aditya Birla Capital as the controlling owner.
The transaction implies a post-money valuation of Rs. 19,250 crore ($2.13 billion) for ABHFL. Upon completion, Aditya Birla Capital expects to hold about 85.7% of ABHFL, with Advent holding about 14.3%. The proposed investment remains subject to shareholder approval, regulatory approvals, and other customary closing conditions.
Aditya Birla Capital positioned the capital raise as a growth move for a housing finance platform it described as among the fastest-growing in India. The company said ABHFL is among the top three players in terms of incremental loan book growth and reported that its assets under management increased at a 48% CAGR over the last three years to Rs. 42,204 crore ($4.67 billion) as of December 31, 2025.
Alongside growth, the company emphasized asset-quality metrics, stating ABHFL has maintained best-in-class quality with a gross stage 3 ratio of 0.54% and a net stage 3 ratio of 0.23%. Aditya Birla Capital said ABHFL plans to use the proceeds to sustain current momentum and increase market share, with an operating model built around investments in technology, digital platforms, distribution, and talent, and a nationwide footprint supported by an omnichannel sourcing network.
Executives framed the deal against broader tailwinds in India’s housing and mortgage markets, pointing to policy initiatives, affordable urban housing priorities, and infrastructure expansion that are widening demand across income segments and geographies. Advent, for its part, characterized the investment as a renewed partnership with the Aditya Birla Group and highlighted confidence in ABHFL’s governance and risk practices as it scales into its next phase.
KEY QUOTES:
“India’s housing sector is at a defining inflection point, driven by progressive policy initiatives such as the Pradhan Mantri Awas Yojana, a sustained thrust on affordable urban housing, and the expanding reach of urban and rural infrastructure. These reforms have broadened housing demand across diverse income segments and geographies. Structured, transparent, and accessible housing finance will play a pivotal role in unlocking the next phase of large-scale growth. The proposed capital infusion will strengthen ABHFL’s financial foundation, enable deeper market penetration, and enhance its ability to shape India’s inclusive and sustainable housing finance ecosystem.”
Kumar Mangalam Birla, Chairman, Aditya Birla Group
“Over the last few years, we have significantly scaled our businesses, and at ABHFL, we have built a full-stack housing finance franchise with a strong focus on prime and affordable segments, and construction finance. Today, ABHFL has a pan-India distribution footprint with a robust omnichannel sourcing network. This growth has been anchored in large market opportunities and sustained investments in technology, digital platforms, distribution, and talent enabling a scalable and resilient operating model. With this proposed capital raise, we enter the next phase of expansion for our housing finance business with a clear focus on sustaining growth momentum and increasing market share.”
Vishakha Mulye, MD & CEO, Aditya Birla Capital Limited
“We are excited to partner once again with the Aditya Birla Group through our investment in Aditya Birla Housing. India’s mortgage market is benefiting from strong structural tailwinds, led by supportive government initiatives and a constructive regulatory framework. Against this backdrop, Aditya Birla Housing has built a high-quality, trusted franchise with strong risk practices and governance standards that are synonymous with Aditya Birla Group companies. We have strong conviction in the leadership team and are delighted to support them as the Company enters its next phase of growth.”
Shweta Jalan, Managing Partner, Advent International
