Religare to buy controlling stake in housing finance co

NEW DELHI: Delhi-based financial services company, Religare Enterprises, is acquiring controlling stake in Maharishi Housing Development Finance Corporation (MHDFC) for an undisclosed amount.

MHDFC has the National Housing Bank (NHB) and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) licence. With this deal, Religare will be able to get into home loans which requires a NHB licence, and will also be able to get into asset recovery and reconstruction business.

The acquired company will be merged with Religare���s NBFC firm ��� Religare Finvest ��� that currently runs a large-scale consumer finance business with a mortgage book size of about Rs 450 crore. When contacted by ET, Religare Enterprises��� CEO Sunil Godhwani declined to comment.

Religare, which is in the process of raising Rs 1,850 crore through a rights issue, is likely to use a significant portion of the funds for development of the consumer finance business.

Religare has been eyeing the housing finance space for some time and had earlier bid for IDBI Homefinance. MHDFC, a player in the rural and tier-III markets, will complement Religare���s existing network in 500 cities and towns.