Capital India Finance Gets RBI Nod to Sell CIHL for ₹267 Crore

Capital India Finance Limited has received prior approval from the Reserve Bank of India (RBI) to sell its entire shareholding in its material subsidiary, namely, Capital India Home Loans Limited (CIHL) to Weaver Services Private Limited. The approval was announced via a RBI Letter dated May 20, 2025.

Transaction Details

• Capital India Finance Ltd has sold the entire stake in the subsidiary firm Capital India Home Loans Ltd (“CIHL”)
• The purchaser of CIHL is Weaver Services Pvt. Ltd.
• The deal is for 100% of the issued share capital, and to acquiring company will hold 100% of the control.
• The transaction is priced at ₹26,700 lakh, which is been the consideration agreed between the parties for the sale of the stake.
• Net proceeds from the deal net of applicable taxes and other expenses will be ₹26,652.71 lakh, Capital India Finance said in a statement.
• CIHL had a turnover of ₹6,706.64 lakh for the financial year ended March 31, 2024, and its turnover formed approximately 9.75% of the consolidated turnover of Capital India Finance Ltd.
• As of March 31, 2024, the net worth of CIHL was ₹14,526.37 lakh, constituting over 23.33% of the total consolidated net worth of the holding company.

Key Timeline & Legal Structure

• A Share Purchase Agreement (SPA) was agreed on October 16, 2024, between CIFL, CIHL, Weaver Services Pvt. Ltd., and other shareholders.
• The transaction, subject to shareholder and other regulatory approvals, is expected to close in 6 to 8 months.
• The transaction will not constitute a related party transaction and is not a part of any Scheme of Arrangement.
• CIHL will not be a subsidiary company after the completion of the aforementioned transactions under Regulations 24(5) and 37A of SEBI LODR regulations.

Buyer Profile

Weaver Services Private Limited, the acquirer, is an Indian private entity with its registered office in Mumbai. The company does not belong to the promoter group or any related group companies of CIFL.

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REF: https://nsearchives.nseindia.com/corporate/CIFL_20052025225855_SE_Intimation_-_Sale_of_Subsidisary.pdf