DHFL raises Rs 500 crore through QIP

Dewan Housing Finance (DHFL) has raised Rs 500 crore through a combination of qualified institutional placement (QIP) and preferential allotment of equity shares.

The company placed Rs 375 crore worth of equity shares with qualified institutional investors at Rs 222 per share. A major portion of the issue was picked up by foreign institutional investors such as Equinox, Mirae Asset Management and EMM. The government of Singapore’s sovereign wealth fund, GIC, also participated in the issue.

The company issued Rs 100 crore of equity to its promoters, the Wadhawan family, and another Rs 25 crore to the UK-based investment firm Caledonia Investment Plc. Caledonia had a 11 per cent stake in DHFL as on March 31. The promoters’ 45.42 per cent stake will be marginally diluted due to fresh equity infusion.

The capital infusion would take its capital adequacy ratio well above 20 per cent, said DHFL Chairman and Managing Director Kapil Wadhawan.

“We are well capitalised after the latest round of capital raising. We are unlikely to require capital for the next two-and-a-half years. The capital will be used to expand our loan book,” he added.

The company is targeting loan book growth of 30-35 per cent this financial year. It reported a net profit of Rs 150.69 crore on an income of Rs 990.55 crore for the financial year ended March 31, 2010.

“Last year, we disbursed Rs 3,865 crore on an incremental basis. This year, we should cross the Rs 5,000-crore mark,” Wadhawan said.

DHFL’s shares rose 2.63 per cent to Rs 236.33 on the Bombay Stock Exchange on Friday.