Kedaara Capital, Partners Group Divest 12.6% Stake in Aavas Financiers

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In a significant development, Kedaara Capital and Partners Group, the promoters of Aavas Financiers, divested 12.6 per cent of their stake in the housing finance company through open market transactions. The divestment, which amounted to Rs 1,369 crore, involved the sale of shares by Kedaara Capital's affiliate Lake District Holdings Ltd and Partners Group's entities, Partners Group ESCL and Partners Group Private Equity Master Fund LLC.

Details of the Share Sale

According to the bulk deal data available on the National Stock Exchange (NSE), Lake District Holdings sold 58.39 lakh shares of Aavas Financiers, while Partners Group ESCL and Partners Group Private Equity Master Fund offloaded a total of 41.57 lakh shares of the housing finance company. Collectively, these entities sold 99,96,950 shares, representing a 12.6 per cent stake in Aavas Financiers Ltd.

The shares were disposed of within a narrow price range of Rs 1,370 to Rs 1,370.20 per share, resulting in a combined transaction value of Rs 1,369.61 crore.

Shareholding Pattern Prior to Divestment

As of December 2023, Lake District Holdings held a 22.98 per cent stake in Aavas Financiers, while Partners Group ESCL owned 11.21 per cent, and Partners Group Private Equity Master Fund LLC had a 4.92 per cent stake in the company.

Acquisition by SBI Mutual Fund and Amansa Holdings

Concurrently with the divestment by the promoters, SBI Mutual Fund and Amansa Holdings acquired a total of 86.59 lakh shares, equivalent to an 11 per cent stake in Aavas Financiers Ltd. The shares were purchased at an average price of Rs 1,370 per share, bringing the combined deal value to Rs 1,186.33 crore. Details regarding the other buyers involved in the transaction were not immediately available.

Impact on Aavas Financiers' Share Price

On the day of the divestment, shares of Aavas Financiers experienced a decline, closing 5.01 per cent lower at Rs 1,360 apiece on the NSE. This suggests that the market reacted negatively to the news of the promoters' stake sale.

The divestment of a significant stake in Aavas Financiers by its promoters, Kedaara Capital and Partners Group, marks a notable development in the housing finance sector. While the reasons behind the divestment remain undisclosed, the transaction has resulted in a change in the company's shareholding pattern and may have implications for its future growth and strategic direction. The acquisition of shares by SBI Mutual Fund and Amansa Holdings indicates continued investor interest in the housing finance sector, despite the challenging economic conditions.