Mumbai: Dewan Housing Finance Corp denied a media report which claimed that three private equity firms are in talks to buy 10 per cent stake in the company. The company clarified that though CMD Kapil Wadhawan, during an investors’ call on Feb 4, had said the company intended to bring in a strategic investor within 90 days, there has been no discussion or decision taken by the board in this regard.
On Feb 4, Wadhawan said promoters of DHFL are looking to get a strategic partner on board the company, while adding that the new investor will not just bring in fresh capital but will also alleviate market concerns surrounding the company.
He further said that the induction of a new investor is not a sell-down of the company, and that the management will ensure that such an investor comes in at “a right value”.
Most non-banking finance companies and housing finance companies, including Dewan Housing, were hit by the liquidity crisis following defaults on debt repayments by Infrastructure Leasing & Financial Services and its group companies late August.
Dewan Housing was also affected by distress sale of its commercial papers by DSP Mutual Fund, at a steep discount, which sparked concerns over the lender’s financials and liquidity position. Moreover, the housing finance company was seriously affected by the fall in its share price after website Cobrapost alleged the Dewan Housing was involved in a Rs 31,000 crore scam.
Since then, some senior executives of the company have resigned, including Joint Managing Director and Chief Executive Officer Harshil Mehta, who stood down from his post on Thursday citing full-time engagement with other assignments within the company. However, he continues to hold the designation of executive president of retail business.
