Centrum Housing Finance will pay Rs 112 crore to buy the business of National Trust Housing Finance (Natrust). Both the companies have entered into a binding business transfer agreement on Saturday.
Centrum Housing will acquire the housing finance business including the loan portfolio, branches and employees, the Centrum group said in a regulatory filing to stock exchanges. Natrust’s loan book was over Rs 300 crore.
Centrum had its loan portfolio at around Rs 700 crore at the end of September.
“The acquisition consolidates our presence in South India, and will help us further increase our penetration across our chosen geographies,” Centrum Group executive chairman Jaspal Bindra was quoted as saying in a statement issued by it.
“There is a growing demand for affordable housing in India, beyond metros and tier 1 cities too. Small cities are witnessing a higher demand driven by greater urbanisation, digitisation, better infrastructure and connectivity,” Bindra said.
Natrust is a Chennai based affordable housing finance company with a presence in 17 locations across four states in South India. Centrum Housing is present in nine states — Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh, Telangana, Karnataka, Rajasthan and in Delhi.