MUMBAI: L&T Finance, the NBFC arm of the engineering giant Larsen & Toubro, today entered into housing finance business with the signing of a definitive agreement to acquire a small-sized housing finance company Indo Pacific Housing Finance (IPHF).
The acquisition, which is subject to regulatory approvals, is likely to help L&T Finance enter into housing finance business by expanding the network of IPHF, the company said in a statement.
"This acquisition will synergize with our existing financial services business by deepening and widening its services. It is our intent to widen the presence of IPHF both geographically and by customer segments," it said, adding that home finance was the logical next step for the NBFC.
It, however, did not disclose the financials of the acquisition and the funding pattern.
According to the company, IPHF had loan book size of Rs 193.5 crore with 34 branches last fiscal, primarily in the Southern and Western regions.
Referring to the acquisition, N Sivaraman, president and whole-time director of L&T Finance said, "With this acquisition, we have taken the first step to go beyond the asset finance orientation into consumer finance domain. We chose the route of acquiring a small, operating business because it brings with a fully functional operating platform with a well experienced team of mortgage experts."
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