Page 16 - Banking Finance April 2020

HOUSING

HOUSING

NEWS
NEWS
NEWS
NEWS
NEWS

Ummeed Housing Finance in new geographies and continue to Yes Bank owes Rs 662
strengthen our technology platform,
raises Rs 164 crore in a Se- with a focus on building strong under- crore via AT-1 bonds:

ries D equity writing practices. We are moving into Indiabulls Housing Finance
the growth stage," said Ashutosh
Ummeed Housing Finance Pvt. Ltd has Indiabulls Housing Finance said Yes
raised Rs.164 crore in a Series D equity Sharma, founder and Managing Direc- Bank owes Rs.662 crore in the form of
round led by a fund managed by Mor- tor, Ummeed Housing Finance. bonds to the company and it has no
gan Stanley Private Equity Asia. term loans outstanding from the
The company aims to double its assets
lender.
under management (AUM) from
Existing investor LGT Lightstone
Aspada, the India-focused impact in- Rs.500 crore to Rs.1,000 crore over the "We wish to inform that Yes Bank owes
vestment platform of LGT Lightstone, next 12-18 months. to Indiabulls Housing Finance Rs 662
which had invested $10 million in crore via additional tier 1 (AT-1)
Ummeed in 2018, also participated in "Affordable housing finance presents a bonds," it said in a regulatory filing.
the new round. Avendus Capital acted large untapped opportunity that
as the exclusive financial adviser to Ummeed intends to address through its The investments in AT-1 bonds of Yes
scalable operating model built with the
Ummeed on the transaction. Bank were made in 2017, as part of its
right blend of technology, people and
treasury management of over
Ummeed, the Gurugram-based afford- processes. We are excited to partner Rs.20,000 crore of cash and when the
able housing financier, started out in with UHFL in its next phase of growth," bank was worth over $10 billion in
2016. It caters to the informal and low- said Nirav Mehta, Managing Director value, it said.
income segment predominantly in Tier of Morgan Stanley Private Equity Asia.
II and Tier III towns and operates in "Indiabulls Housing Finance has no
Rajasthan, Haryana, Delhi-NCR, and "The housing finance sector in India has term loans outstanding from Yes Bank,"
Uttar Pradesh. It offers Rs.3 lakh to seen a liquidity crunch for most of this it said.
Rs.50 lakh loans for home purchases, financial year, with stress in a couple
home construction, home renovation, of large housing finance companies. Sameer Gehlaut, promoter of
loan against property, and business Indiabulls Housing Finance, or any of his
loans. Fund raising from a credible private companies or any of his family mem-
equity investor in the current environ- ber companies have no loans outstand-
"This round of fund-raising gives us ment signifies the trust the fund has ing from Yes Bank, the non-banking fi-
clear visibility on the equity front be- shown in the growth story and the ro- nance company said further.
fore entering the next financial year. bust business model of the company,"
We will use these proceeds to expand Sharma said. The statement from Indiabulls Housing

14 | 2020 | APRIL | BANKING FINANCE