Dhandapani Finance puts itself on sale

Chennai-based NBFC Dhandapani Finance on Tuesday informed the stock exchanges that its board of directors will meet on June 9 to consider the sale of the company, including all its assets, liabilities, brand and goodwill, by way of a 'slump sale' to Zwirn Pragati Capfin (ZPL), at a value decided by the board on the basis of the report of an independent valuer appointed by ZPL.

At present, D B Zwirn Mauritius holds 51 per cent stake while the public holding is at 44 per cent. Dhandapani Holdings has 4.61 per cent stake in the company.

Dhandapani Finance official could not be contacted for comments. The relationship between the proposed buyer and D B Zwirn Mauritius, the present majority shareholder, too could not be established.

The company's board had in May approved issuance of redeemable preference shares on preferential basis to the extent of Rs 23 crore to Zwirn Pragati Capfin.

The board had also approved issuance of compulsory convertible preference shares on preferential allotment basis to the extent of Rs 2.5 crore to D B Zwirn Mauritius Trading No 2 Limited, or any of its affiliates, associated or group companies or any of the subsidiaries of D B Zwirn Special Opportunities Fund.

An approval from the board was also obtained for issuance of compulsory convertible preference shares on preferential basis to the extent of Rs 2.5 crore to Zwirn Pragati Capfin.

The board will meet later this month to consider the status and the way forward with regard to the proposed rights issue of the company.