The sale procedure will enable the company to significantly reduce its debt / equity ratio and fully restart the company, with the addition of sources.
Photo of the DHFL logo file (image: Reuters).
New Delhi: Debt mortgage lender initiators, DHFL, are in talks with private equity companies and expect to raise USD 1 billion (about Rs 6,900 crore) by selling nearly 50 percent of their shares, sources said.
The Wadhawan family, the company's promoters, currently hold nearly 40 percent of the business. Private equity firms Lone Star, AION Capital and KKR are doing due diligence at the housing company, and depending on the outcome of their due diligence they will make a definitive offer to the initiators for strategic deployment, sources said.
The sale procedure will allow the company to significantly reduce its debt / equity ratio and fully restart the company, she added. When contacted, the company declined to comment. According to sources, promoters have also expressed the intention to leave management.
As soon as the strategic partner arrives, the company is expected to widen the composition of the board and manage it as a management entity with joint critical decisions of the Wadhawan family and the strategic partner, sources said. Over the past three decades, the company has provided services to the low to medium income segment in the Tier II and III markets with assets under management of more than Rs 1 lakh Crore.
DHFL Chairman and Managing Director Kapil Wadhawan said in February: "We want a strong strategic partner that can not only add value, but also alleviate any concerns of the market and also attract new shares and capital." He said that a strategic partner is being scouted for DHFL and that this will happen over the next 90 days, adding the process that has been taken care of since the September crisis.
The sale is part of the sale of various assets started by either DHFL or Wadhawan Global Capital, the group's holding group, in recent weeks, including the abandonment of its affordable Aadhar housing weapon. The group is also negotiating to sell its life insurance weapon to a domestic partner and has appointed investment bankers for this
. (tagsToTranslate) DHFL (t) KKR (t) Lone Star (t) New Delhi (t) stock market (t) Wadhawan Global Capital