HDFC Capital Advisors, the private equity arm of HDFC Bank, has exited its second investment of Rs 1,100 crore in Bengaluru-based Adarsh Developers. This was part of its total commitment of Rs 2,500 crore across four investments with the developer.
The platform was created in 2022 to develop 17 mid-income residential projects comprising 10,000 units spread across 15 million sq ft in key Bengaluru suburbs including Bellandur, Gunjur, Hennur, JP Nagar and Banashankari.
HDFC Capital’s first investment of Rs 395 crore was exited in the second quarter of 2024 at a gross internal rate of return (IRR) of 21%, while the second investment has been exited at a gross IRR of 20%.
"Our strategic collaboration with HDFC Capital has facilitated the launch of new projects by Adarsh and ensured timely completion of on-going projects. The exit of this investment is a key milestone for all stakeholders having witnessed significant value creation. We look forward to continuing to partner with HDFC Capital,” said B.M. Jayeshankar, CMD, Adarsh Developers.
The partnership with HDFC Capital has supported Adarsh Developers in repayment of debt, kick-start projects and strengthen its overall financial position. The performance of these investments was aided by Adarsh Developers’ project execution leading to value creation.
“The successful exit of the investment highlights the robustness of our strategy of partnering with top rated developers and offering structured and tailor-made solutions to help finance the development of quality homes for mid-income households in India," said Kunal Wadhwani, Principal Investments, HDFC Capital.
HDFC Capital Advisors manages four SEBI-registered Category II Alternative Investment Funds that together form a $ 4.5 billion platform focused on financing affordable and mid-income housing across India.
The investment strategy is aligned with the Government of India’s ‘Housing for All’ initiative and aims to promote sustainable housing development while supporting innovation and technology adoption in the real estate sector.
With the second exit, HDFC Capital and Adarsh Developers are expected to continue their collaboration through the remaining platform investments in mid-income residential projects across Bengaluru.
India’s housing market has continued to display strong momentum through 2025, driven by sustained end-user demand, rising household incomes, and the growing preference for branded developers. The mid-income and affordable housing segments have seen steady absorption, supported by lower interest rates and government-backed incentives.
Large institutional investors have remained active in funding residential platforms, reflecting confidence in the long-term potential of urban housing. Mumbai Metropolitan Region, Bengaluru, and Pune have led the in sales activity, with developers focusing on timely delivery and efficient project management to tap into the structural demand for quality homes.
The platform was created in 2022 to develop 17 mid-income residential projects comprising 10,000 units spread across 15 million sq ft in key Bengaluru suburbs including Bellandur, Gunjur, Hennur, JP Nagar and Banashankari.
HDFC Capital’s first investment of Rs 395 crore was exited in the second quarter of 2024 at a gross internal rate of return (IRR) of 21%, while the second investment has been exited at a gross IRR of 20%.
"Our strategic collaboration with HDFC Capital has facilitated the launch of new projects by Adarsh and ensured timely completion of on-going projects. The exit of this investment is a key milestone for all stakeholders having witnessed significant value creation. We look forward to continuing to partner with HDFC Capital,” said B.M. Jayeshankar, CMD, Adarsh Developers.
The partnership with HDFC Capital has supported Adarsh Developers in repayment of debt, kick-start projects and strengthen its overall financial position. The performance of these investments was aided by Adarsh Developers’ project execution leading to value creation.
“The successful exit of the investment highlights the robustness of our strategy of partnering with top rated developers and offering structured and tailor-made solutions to help finance the development of quality homes for mid-income households in India," said Kunal Wadhwani, Principal Investments, HDFC Capital.
HDFC Capital Advisors manages four SEBI-registered Category II Alternative Investment Funds that together form a $ 4.5 billion platform focused on financing affordable and mid-income housing across India.
The investment strategy is aligned with the Government of India’s ‘Housing for All’ initiative and aims to promote sustainable housing development while supporting innovation and technology adoption in the real estate sector.
With the second exit, HDFC Capital and Adarsh Developers are expected to continue their collaboration through the remaining platform investments in mid-income residential projects across Bengaluru.
India’s housing market has continued to display strong momentum through 2025, driven by sustained end-user demand, rising household incomes, and the growing preference for branded developers. The mid-income and affordable housing segments have seen steady absorption, supported by lower interest rates and government-backed incentives.
Large institutional investors have remained active in funding residential platforms, reflecting confidence in the long-term potential of urban housing. Mumbai Metropolitan Region, Bengaluru, and Pune have led the in sales activity, with developers focusing on timely delivery and efficient project management to tap into the structural demand for quality homes.
