Mumbai: Indian banker Rana Kapoor’s family is planning to sell a stake in their six-year-old mortgage finance company, sources said, as rising wariness in the credit market erodes growth prospects of shadow finance firms.
The family office run by the three daughters of the Yes Bank Ltd co-founder is working with Nomura Holdings Inc on the potential deal, according to the sources.
It has reached out to several private equity firms to gauge their interes.
While default at Infrastructure Leasing & Financial Services Ltd triggered a liquidity crunch in India’s credit market, it has helped private equity firms such as Blackstone LP acquire assets.
Many founders – from tycoon Anil Ambani to media mogul Subhash Chandra – are selling assets to tide over a liquidity crunch.
Shadow banks are facing most of the burnt as the cracks from the credit squeeze spread far and wide forcing investors to shun their debt and raising rollover risks for outstanding borrowings.
The Kapoor family office could consider selling a majority stake in the business, the sources said.
Deliberations regarding a potential sale are at an early stage, and there’s no guarantee they would lead to a transaction, the sources said.
An official at the fund – known as The Three Sisters: Institutional Office – referred queries to ART Housing.
ART Housing’s founders are planning to sell a minority stake to fund expansion, Arvind Hali, chief executive officer of the lender said in an email. The mortgage financier, with 35 branches, is in the process of raising equity capital from institutional investors, he said. A representative for Nomura didn’t immediately respond to an email seeking comment. — Bloomberg