Date: September 25, 2026

Transaction Closure Update

Edelweiss Financial Services Limited has consummated the transaction announced in February 2026, whereby CA Sardo, an investment entity affiliated with global investment firm Carlyle, acquired a strategic majority stake in Nido Home Finance Limited (Nido), a wholly-owned subsidiary of Edelweiss. The transaction was completed on September 25, 2026, after receiving all requisite regulatory and statutory approvals.

Details of Strategic Transaction

Investment Structure:

  • Carlyle's total investment through CA Sardo exceeds INR 2,000 crore (~USD 210 million)
  • Primary capital infusion of approximately INR 1,450 crore into Nido
  • Approximately INR 725 crore received at closing
  • Balance to be received within 18 months
  • Secondary purchase of 45% stake from Edelweiss for approximately INR 600 crore (completed)

Ownership Changes:

  • Post-completion of the full primary capital infusion (within 18 months), Edelweiss will hold approximately 26% of Nido

Additional Consideration:

  • Edelweiss to receive a share of the upside subject to CA Sardo realizing returns on its investment in Nido above a specified threshold

Strategic Rationale

For Nido Home Finance:

  • Access to fresh growth capital to strengthen momentum
  • Benefit from Carlyle's operating expertise to better serve the growing affordable housing segment
  • Onboarding of a high-quality board with diverse experience

For Carlyle (via CA Sardo):

  • Entry into high-growth housing finance sector with an established platform
  • Application of financial services expertise to a business with strong structural demand

For Edelweiss Financial Services:

  • Creates value for its housing finance business
  • Capital from stake sale to be used to reduce debt and strengthen the balance sheet

Nido Home Finance Business Overview

Market Position:

  • Assets Under Management (AUM) of approximately INR 4,900 crore
  • Approximately INR 2,000 crore deployed in affordable housing
  • Scaled affordable-housing platform

Distribution Network:

  • 68 branches across 11 states and 3 Union Territories
  • 68% of loan accounts in non-metro markets
  • Serves over 800 talukas (sub-districts) in India
  • Deep last-mile reach

Market Context:

  • 13.6% CAGR in home loans over FY21-FY26
  • Disbursements doubled to INR 11.7 lakh crore
  • 35 lakh active housing-credit accounts are loans of up to INR 44 lakh in H1FY26
  • 82% of HFC portfolios are sub-25 lakh loans, serving informal and semi-formal borrowers

Outcome Summary

The transaction combines:

  • Nido's reach and focused operating platform: A scaled affordable-housing franchise with deep last-mile distribution
  • Carlyle's capital and sectoral expertise: Growth capital with global financial-services operating insight
  • Edelweiss's parentage and governance continuity: Access to Edelweiss relationships and continuity through Board nominees

The outcome positions the business for its next phase of growth — serving more customers, strengthening its market position and creating enduring value for all stakeholders.