HDFC Capital Exits Rs 2,500 Cr Adarsh Developers Platform

HDFC​‍​‌‍​‍‌​‍​‌‍​‍‌ Capital Advisors, the private equity arm of HDFC Bank, has decided to part ways with its second investment at Adarsh Developers and thus, Bengaluru-based Adarsh Developers is no more the key milestone in its Rs 2,500 crore residential development platform.

The first exit was made after the initial investment of Rs 395 crore in 2024. This time the exit is estimated to be around Rs 1,100 crore. Both investments thus have generated strong returns with gross internal rates of 21% and 20%, respectively.

Key Highlights

• HDFC Capital exits ₹1,100 crore second investment in Adarsh Developers with 20% IRR.
• Partnership platform worth ₹2,500 crore aims to develop 10,000 mid-income homes in Bengaluru.
• Exit reinforces HDFC Capital’s $4.5B housing strategy aligned with India’s ‘Housing for All’ vision.

The HDFC–Adarsh platform, initiated in 2022, aimed at developing 17 mid-income housing projects i.e., 10,000 units of 15 million sq ft each in the Bengaluru suburbs of Bellandur, Gunjur, Hennur, JP Nagar, and Banashankari. The partnership facilitated by the developers in paying off the debt, project execution, and on-time delivery has brought in a lot of value to the stakeholders.

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B.M. Jayeshankar, CMD, Adarsh Developers, articulated the effect of HDFC Capital: "The support from HDFC Capital has resulted in numerous project launches and completions, and this has added to our company's financial strength."

Kunal Wadhwani, Principle Investments, HDFC Capital, mentioned that this successful exit is a clear indication of the firm's strategy, which is to work closely with developers of the highest rating thereby providing the required finances for quality mid-income home projects all over India.

HDFC Capital is running four SEBI-registered Category II AIFs, which together form a $4.5 billion housing platform, in line with the Government of India's 'Housing for All' mission. The next chapter of mid-income residential growth in Bengaluru's thriving real estate market will be written through the ongoing partnership of HDFC Capital and Adarsh ​‍​‌‍​‍‌​‍​‌‍​‍‌Developers.