DHFL Seeks Board Nod To Raise Funds Via Share Sale
An Indian 2,000 rupee, bottom, and 500 rupee banknotes are arranged for a photograph. (Photographer: Brent Lewin/Bloomberg)

DHFL Seeks Board Nod To Raise Funds Via Share Sale

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Debt-ridden Dewan Housing Finance Corporation Ltd. on Tuesday said it plans to raise funds through equity share sale or other means as part of the debt resolution plan of the company.

The DHFL board is scheduled to hold meeting on Aug. 30, in which the said proposal is to be placed, the firm said in a regulatory filing.

“A meeting of the board of directors of the company is scheduled to be held on Friday, Aug. 30, 2019, to consider and approve the proposal for issuance of equity shares and/or other securities of the company including by way of preferential issue, pursuant to a conversion of debt to equity under the proposed resolution plan,” it said.

The fund mop-up can also be through any other permissible mode or a combination of prospectus/placement document or letter of offer or any other permissible offer, it added.

Separately, DHFL also informed that it has defaulted to the tune of Rs 14.13 crore towards interest payments on bonds issued by the company.

An interest payment default of Rs 9.42 crore occurred on secured non-convertible debentures (5 years tenure) and of Rs 4.71 crore on 10 years NCDs, it said in an another regulatory filing.

The housing finance company has been crippled with finances and has not been able to meet its debt obligations over the past several months, leading to defaults.

DHFL has a debt pile-up nearing about Rs 90,000 crore on its books and it has resorted to various means to raise funds, including selling of equity as well as exiting from many businesses where it held significant stakeholding.

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