IndoStar Capital Finance Limited has received approval from the Reserve Bank of India (RBI) for the sale of its entire shareholding in its subsidiary, Niwas Housing Finance Private Limited (NHFPL), to Witkopeend B.V. The transaction, which includes shares held by nominee shareholders as well, was earlier approved by the company’s board on September 19, 2024, subject to customary conditions and regulatory clearances.
The RBI approval, granted on March 21, 2025, permits the acquisition of up to 100% of the paid-up equity capital of NHFPL by Witkopeend B.V. in accordance with the provisions of the Master Direction for Non-Banking Financial Company-Housing Finance Companies (HFC Directions) dated February 17, 2021. Additionally, the central bank has also approved the consequent change in NHFPL’s management, allowing the appointment of the purchaser’s nominees to the board of directors upon completion of the transaction.
A public notice will now be issued as required under paragraph 47.1 of the HFC Directions, with a reduced waiting period of seven days. Post the expiry of this notice period, the transaction will be completed in line with the terms of the share purchase agreement signed between IndoStar, NHFPL, and Witkopeend B.V.
