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DHFL to raise $70 million from IFC

Will use them to increase its reach and market share

T E Narasimhan  |  Chennai 

Dewan Housing Finance Corporation Limited (DHFL), the second largest private housing finance company, will raise $70 million from the International Finance Corporation (IFC).

The proposed fund raising, which is subject to approval from the Reserve Bank of India, is intended to help grow its assets, increase its reach and improve its market share.

According to IFC, this would involve a Senior loan of up to $70 million to DHFL, a co-investment from the Canada Climate Change Program (CCCP) where will act as implementing entity for CCCP to support climate change investments.

Established in 1984, DHFL's objective is to provide affordable housing finance options to the lower and middle income groups in India. offers both housing loans (house purchase, construction, extension and project loan) and non-housing loans (loan against property, lease rental financing, and purchase of commercial premises).

Its shareholders include the Wadhawan family and other promoters who hold 36% stake while the remaining 64% stake is in the public domain (institutional shareholders hold 43% and other bodies corporate/individuals hold the balance 22% stake).

said that it's investment would demonstrate the viability of offering housing finance to LMI clients. While housing finance is one of the lowest risk asset classes in India's financial sector, mainstream commercial institutions have so far shown limited interest in this segment.

is dependent on banks for 70% of its funding needs. Funding from will ensure diversity of funding profile for the company.

First Published: Fri, February 08 2013. 10:14 IST