Mumbai, Jan. 27 -- Mumbai-based financial services group Motilal Oswal wants to exit the home finance business and has put its housing finance company on the block, three people aware of the matter said.

The development comes in the backdrop of increased deal activity in the affordable housing space in the past few months, both from private equity investors and in the primary markets.

Motilal Oswal has appointed investment bank Avendus Capital to look for potential buyers, the people cited above added on condition of anonymity.

The group's holding company, Motilal Oswal Financial Services Ltd, along with other wholly owned subsidiaries, currently holds 97.49% stake in the housing finance subsidiary, Motilal Oswal Home Finance.

While i...