Dewan Hsg to dilute 15% for Rs 200 cr

Dewan Housing Finance (DHFL), a housing finance company, said it is planning to dilute 15 per cent equity to raise close to Rs 200 crore by the end of this financial year.

“We will be raising Rs 150-200 crore through around 15 per cent equity dilution by March 2009. We are exploring all options, including a rights issue,” said DHFL Vice-chairman and MD Kapil Wadhawan.

Though Wadhawan refused to divulge details, he said the firm is in talks with various investors, both foreign and domestic, for raising the capital.

At present, the promoter group holds 53.94 per cent in the firm, with the remaining held by mutual funds, FIIs, banks, corporates and individuals.

Despite a slew of measures taken by the Reserve Bank of India against the backdrop of the downturn in the economy, the cost of funds are yet to decrease for housing finance companies (HFCs). Though banks emerged as their principal source of funds, with interest rate hovering around 13-14 per cent many HFCs are looking for alternate source of funds.