“Out of Rs 305 crore that Shubham Housing Finance has got from Premji Invest, Rs 70 crore would be paid to some of the existing investors in the company, Sanjay Chaturvedi, Executive Director of Shubham Housing Development Finance, said.
He further added, “While new preference shares worth Rs 235 crore are being issued to the investment arm of Premji.”
The stakes bought by Premji Invest were purchased from two Private equity investors, Saama Capital and ACCION’s Frontier Investment Group.
Chaturvedi said, Shubham Housing Finance currently has a loan of Rs 1,000 crore and aims to grow its home loans business to Rs 5,000 crore in the next four years.
The affordable housing sector has gained the momentum after the central government’s initiative of housing for all by 2022.