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Mumbai: Morgan Stanley backed Centrum Housing Financea hand of miscellaneous centrum grouphas paid Rs 112 crore towards the home loan portfolio of Rs 300 crore of the Chennai-based company. National Trust Housing Finance,
Centrum Group has entered into a binding agreement to acquire the housing finance business of National Trust Housing Finance, Centrum Housing said in a statement without disclosing the value of the transaction.
However, sources told PTI that the Jaspal Bindra-run company paid around Rs 112 crore for the transaction.
In 2020, Wall Street brokerage Morgan Stanley paid Rs 190 crore for a 20 per cent stake in Centrum Housing Finance.
Centrum Housing Finance, the affordable housing finance arm of the Centrum Group, also operates Ekta Small Finance Bank,
National Trust Housing Finance is into affordable housing finance since mid-1990s and is present in 17 cities across four southern states. It has a loan book of over Rs 300 crore and approximately 150 employees and Centrum will acquire the housing finance business including loan portfolio, branches and employees.
Centrum Housing currently has a loan book of over Rs 700 crore and this deal will take it past the Rs 1,000 crore mark. It started operations in 2017 and offers home loans, loans against property, plot purchase and construction, and home extension loans across 10 states, and employs over 500.
Jaspal Bindra, executive chairman of Centrum Group, said the acquisition will help the company expand its geographic coverage, increase origination capacity to drive organic growth.
“There is more demand for affordable housing in smaller cities now and we believe this sector has immense growth potential,” he added.
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