HDFC Capital Advisors Ltd, the private equity arm of HDFC Bank, has successfully completed a ₹1,100 crore exit from Bengaluru-based Adarsh Developers. This marks the firm’s second major exit from the real estate platform jointly created with the developer. The first exit, worth ₹395 crore, was completed in the second quarter of 2024.
Formed in 2022, the partnership between HDFC Capital and Adarsh Developers was designed to promote mid-income residential housing across Bengaluru. The platform aimed to develop around 15 million sq. ft. of residential space, comprising nearly 10,000 housing units in well-connected suburban locations such as Bellandur, Gunjur, Hennur, JP Nagar, and Banashankari.
The latest exit was achieved through Category II Alternative Investment Funds (AIFs), reflecting strong investor confidence and robust demand in India’s mid-income housing segment. The projects were aligned with the government’s ‘Housing for All’ initiative, focused on delivering affordable, high-quality homes to urban homebuyers and families.
The gross Internal Rate of Return (IRR) for this exit stands at approximately 20%, while the earlier exit recorded an IRR of around 21%. According to B.M. Jayeshankar, Chairman and Managing Director of Adarsh Developers, this milestone showcases the value created through long-term partnerships, efficient execution, and shared growth vision. He added that the collaboration with HDFC Capital will continue through other ongoing projects within the same platform.
Investments at HDFC Capital Advisors, stated that the successful exit reinforces the company’s commitment to supporting credible developers and strengthening India’s mid-income and affordable housing ecosystem. He noted that HDFC Capital will continue to explore structured financing opportunities to promote sustainable urban development across major Indian cities.
The remaining projects under the HDFC Capital–Adarsh Developers partnership are progressing as planned, maintaining a strong focus on affordable and inclusive housing. This exit highlights rising investor interest, steady homebuyer demand, and improving financial performance across India’s residential real estate sector, particularly in growth hubs like Bengaluru.
Also Read: GTB Launches India’s First Man-Made Beach Township in Chennai
