The plan has met with scepticism from banks in the consortium, so the company has approached prospective investors.
Dewan Housing and Finance Corporation (DHFL) has proposed to convert lender debt into equity to facilitate a 51 percent stake sale at Rs 54 per share, in a bid to get out of its financial mess, the Business Standard reports.
The plan has been met with scepticism from banks in the lenders' consortium, following which the company has turned to prospective investors such as AION Capital to see the resolution through, the report added.
Moneycontrol could not independently verify the report.
DHFL feels that talks with the prospective investors have been positive and they have shown interest in individual segments of the company’s assets portfolio such as priority funding for development loans and Slum Rehabilitation Authority (SRA) projects, it said.
As per the paper, while private equity firm AION had initially expressed interest in DHFL’s retail portfolio, recent talks have turned to the acquisition of the majority stake after debt conversion.
DHFL and AION Capital did not respond to queries from BS.
Potential investors have demanded legal indemnity from future claims against the company after they take over, it added.
DHFL’s resolution plan in June, 2019 stated that public deposits (PDs) and non-convertible debentures (NCDs) of up to Rs 10 lakh held by retail investors would be fully repaid, but amounts above Rs 10 lakh would be subject to terms of the unsecured investors.Further, a moratorium will range from five quarters to 32 quarters depending on the instruments. The company holds secured debt of Rs 74,995 crore and unsecured debt of Rs 10,036 crore.The Great Diwali Discount!
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