Cobrapost impact: Wadhawan group to bring strategic investor for DHFL

Deal likely in 90 days, they say; promoter holding to be diluted on expanded equity

The Wadhawans, promoters of Dewan Housing Finance Corporation (DHFL) are planning to rope in strategic investor to infuse fresh equity into company.

In a analyst call, Kapil Wadhawan, chairman, Wadhwan Global Capital Ltd ( WCG) said there are already active discussions about roping in strategic investors. The deal is likely to be finalised in 90 days. WCG is promoter holding company of the group.

The promoter holding will be diluted in the expanded equity of DHFL. The talks for getting strategic investor have gathered pace due to hostile market conditions after the so-called cobrapost expose.

Last week, media outlet Cobrapost alleged Dewan Housing Finance Corporation (DHFL) had diverted loans worth Rs 31,000 crore — a charge the company termed “mischievous”. Also, in the third quarter, the company had to face market wrath over asset liability risks after IL&FS group entities defaulted on payment of dues.

DHFL has taken strategic measures which it intends to conclude in the medium term to tackle the changed market conditions. 

It plans to infuse fresh capital of around Rs 2,000 crore and monetise certain group investments by DHFL and its parent (Wadhawan Global Capital Limited). 

These steps are aimed at considerably reducing the gearing levels of DHFL to below eight times. Both companies have signed deals with Blackstone to sell over 70 per cent of their stake in Aadhar Housing Finance Ltd.