India Digest: ADIA to buy 20% in IIFL Finance; RIL-Apollo in race to buy Boots pharma

Abu Dhabi Investment Authority (ADIA) has agreed to invest $283 million in non-banking financial company IIFL Finance Limited. In another development, a consortium of Reliance Industries Ltd (RIL) and buyout firm Apollo Global Management Inc has joined the race to acquire Walgreens Boots Alliance Inc’s Boots pharmacy unit in the UK.

ADIA to invest $283m in IIFL Finance

Abu Dhabi Investment Authority (ADIA) has entered into an agreement to invest about $283 million (Rs 2,200 crore) for a 20% stake in non-banking financial company IIFL Finance Limited, per an announcement on Friday.

In a statement, IIFL Home Finance Limited said it would use the additional capital to continue its granular expansion strategy into new markets to address the significant and growing demand for housing loans.

“IIFL Home Finance has built a strong foundation and is at an inflection point as it leverages new strategies such as co-lending, foraying into more granular products, and expanding reach across Tier II and Tier III regions. We welcome our new partners and look forward to working with them in the next phase,” said IIFL Home Finance CEO Monu Ratra.

Established in 2006, IIFL Home Finance offers small-ticket housing loans, loans against property, and construction finance. It also actively supports the construction of green affordable buildings in the country in collaboration with housing developers.

The company has created assets under management of Rs23,617 crore as of March 31, 2022, with an active customer base of 168,000 across 16 states and 2 union territories with over 200 branches backed by over 3,200 employees.

RIL-Apollo in the fray to buy Boots pharma unit

A consortium of Mukesh Ambani-led Reliance Industries Ltd (RIL) and buyout firm Apollo Global Management Inc has joined the race to acquire Walgreens Boots Alliance Inc’s Boots pharmacy unit in the UK, Mint reported.

Walgreens had put the above-mentioned assets on the block in December, seeking a valuation of $8.6 billion. The consortium has, however, valued the assets slightly lower in the range of $7-8 billion, the report said citing sources.

The deal will help RIL expand its presence in the healthcare space. The company had bought a 60% stake in Chennai-based online pharmacy startup Netmeds for Rs 620 crore in 2020.

Walgreens runs more than 2,200 Boots pharmacies across the UK, Ireland, Italy, Norway, the Netherlands, Thailand, and Indonesia.

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