Small Cap World Fund sells partial stake in Aavas Financiers via bulk deal

Venture capital firm Small Cap World Fund Inc has sold partial stake in Aavas Financiers through open market transactions on Monday.

According to bulk deals data available with the exchanges, Small Cap World Fund has offloaded 7.7 lakh shares or nearly 1% stake in the company. The transaction was done at a weighted average price of Rs 1,437 apiece.

Through the sale, the VC firm earned Rs 110 crore. As of March quarter, Small Cap World Fund held nearly 8% stake in the company. Further, another foreign investor Societe Generale has bought 0.5% stake in Aavas Financiers, bulk deals data showed.


Aavas Financiers is a majority public owned company with 60.8% stake, while promoters own the rest 39.1%, as of March quarter.

Among the public shareholders, mutual funds have about 7.17%, while foreign investors are sitting with nearly 38% stake. Private insurer SBI Life also has 2.7% in the company.

Aavas Financiers is primarily engaged in the business of providing housing loans to customers belonging to the low and middle income segment in semi-urban and rural areas.

The company's customers are mostly those who are financially excluded by other large housing finance companies and banks. Aavas uses a unique appraisal methodology to assess these customers individually.

Its product offering consists of home loans for the purchase or construction of residential properties, and for the extension and repair of existing housing units.

At the end of March quarter, Aavas Financiers had an AUM (assets under management) of Rs 14,166 crore, of which home loans made up for 69.9%, and other mortgage loans contributed 30.1%. The company has a total of 346 branches.

For the full year ending March, the company has reported a profit of Rs 428 crore, registering a growth of 20% year-on-year.

On Monday, the company's shares closed 5% higher at Rs 1,466 on NSE. So far this year, the stock is down nearly 19%.