+
Centrum Capital explores sale of its stake in housing
Real Estate

Centrum Capital explores sale of its stake in housing

Centrum Capital, the financial services conglomerate under the leadership of Jaspal Bindra, is reportedly considering the possibility of divesting its stake in its mortgage financing subsidiary, Centrum Housing Finance. According to sources familiar with the matter, Centrum Group, headquartered in Mumbai, currently holds a 74% stake in Centrum Housing Finance, while private equity investor Morgan Stanley PE Asia owns approximately 25%, having invested $190 crore in the company in 2020.

"One of the sources revealed that Centrum is formulating a plan to explore the sale of its stake in its housing finance business and that a formal process is expected to be initiated shortly," the report stated. The housing finance business is estimated to command a valuation of approximately $1,500 crore, as per the source.

The decision to pursue a stake sale in the housing finance business is believed to be prompted by directives from the Reserve Bank of India (RBI). These directives arose in the wake of the acquisition of PMC Bank (now renamed Unity Small Finance Bank) by the Centrum Group and BharatPe consortium in 2021. RBI regulations stipulate that if Centrum continues to maintain a majority stake in the housing finance subsidiary, it cannot engage in the business of mortgage financing.

Centrum's exploration of a stake sale reflects the evolving dynamics within the financial services sector and its commitment to aligning its business operations with regulatory guidelines.

Centrum Capital, the financial services conglomerate under the leadership of Jaspal Bindra, is reportedly considering the possibility of divesting its stake in its mortgage financing subsidiary, Centrum Housing Finance. According to sources familiar with the matter, Centrum Group, headquartered in Mumbai, currently holds a 74% stake in Centrum Housing Finance, while private equity investor Morgan Stanley PE Asia owns approximately 25%, having invested $190 crore in the company in 2020. One of the sources revealed that Centrum is formulating a plan to explore the sale of its stake in its housing finance business and that a formal process is expected to be initiated shortly, the report stated. The housing finance business is estimated to command a valuation of approximately $1,500 crore, as per the source. The decision to pursue a stake sale in the housing finance business is believed to be prompted by directives from the Reserve Bank of India (RBI). These directives arose in the wake of the acquisition of PMC Bank (now renamed Unity Small Finance Bank) by the Centrum Group and BharatPe consortium in 2021. RBI regulations stipulate that if Centrum continues to maintain a majority stake in the housing finance subsidiary, it cannot engage in the business of mortgage financing. Centrum's exploration of a stake sale reflects the evolving dynamics within the financial services sector and its commitment to aligning its business operations with regulatory guidelines.

Next Story
Real Estate

No glass boxes!

India is moving away from the ‘glass box’ syndrome, all-glass façades that were widely used in commercial buildings in the last two decades but came at a significant environmental cost given the country’s predominantly hot and humid climate. Poor thermal performance, excessive heat gain and dependency on mechanical cooling systems made buildings with glass façades energy guzzlers and significantly increased their carbon footprint.That said, it’s important to be aware that “glass is not the enemy,” points out Heena Bhargava, Architect, Architecture Discipline. “How it ..

Next Story
Infrastructure Transport

Why do pavements fail?

India’s highways continue to expand at a healthy pace. But conversations on the surface quality of highways are growing louder because major deficiencies and black spots continue to be identified, and they are cause for concern.“Road surface roughness causes vehicle vibrations that, in turn, can affect the performance of drivers,” explains Dr V K Gahlot, Road Safety Auditor, Centre for Research and Sustainable Development (CfRSD). “Continuous exposure may induce fatigue, a contributory factor to road accidents. Road surface roughness also affects the vehicle operating cost...

Next Story
Infrastructure Urban

APAC Logistics Rents Fall for First Time Since 2020

Logistics rents across the Asia-Pacific region declined 0.4% year-on-year in H1 2025, marking the first annual drop since 2020, according to Knight Frank’s Logistics Highlights H1 2025 report. Despite global trade tensions and cautious occupier sentiment, India emerged as a standout performer, driven by robust manufacturing momentum and supply chain recalibration.Regional Trends and DivergenceWhile rents largely remained stable across most markets, regional differences became more pronounced:Mainland China continued to see rental declines, though the pace of decline moderated to 12.8% YoY, s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?