ICICI Bank’s home finance firm for Rs 2,250 crore, said two sources close to the development.
“US based private equity firm entered into an an agreement to buy ICICI Home Finance Company,” said the sources mentioned above. “TPG has paid Rs 2,250 crore for the company.” The transaction is subject to regulatory approvals.
TPG has roped in S Sridhar former chairman of Shriram Capital to head the home finance firm. TPG has invested $1 billion in India so far. In India, it has invested in companies like Janalakshmi Finance and Shriram Capital.
Earlier this year, private equity firm Kedaara Capital and US based Partners Group had bought mortgage arm of Jaipur-based lender Au Financiers for Rs 950 crore.
ICICI Home Finance has around 300 people and 10 branches. The company has a net-worth of around Rs 1,500 crore. The company has market borrowing of around Rs 7,000 crore.
ICICI Bank has sold some of the non-core business this year. ICICI Prudential Life sold 6% to Azim Premji and Singapore government-owned Temasek Holdings’ firm for Rs 1,950 crore, valuing the company at Rs 32,500 crore, which makes it the most valuable private sector insurer.
The Bank had also sold 9% in general insurance for Rs 1,550 crore to Fairfax Holdings.
TPG buys ICICI Home Finance for Rs 2,250 crore