DHFL To Soon Divest Full Stakes in Two Subsidiaries To Meet Debt Obligations
Dewan Housing Finance Corporation Ltd. on Wednesday said it will shortly divest its full stakes in subsidiaries DHFL Pramerica Asset Managers Pvt. Ltd. and DHFL Pramerica Trustees Pvt. Ltd.
In its June 25 letter, Securities and Exchange Board of India granted DHFL Pramerica Asset Managers its prior approval for proposed change in controlling interest and amendment in trust deed, subject to certain conditions, DHFL said in a filing to BSE.
DHFL has already entered into a binding term sheet with PGLH of Delaware Inc. for divestment of its entire 50 percent stake in DHFL Pramerica Asset Management.
DHFL directly holds 17.12 percent stake in the company and 32.88 percent through subsidiary DHFL Advisory & Investments Pvt. Ltd.
The term sheet agreement also applies for selling DHFL's entire shareholding of 50 percent in DHFL Pramerica Trustees. The share purchase agreements for the said transactions has also been executed by the company.
"The divestment of the company's entire shareholding in DPAMPL and DPTPL to Prudential is expected to be completed shortly," DHFL said in the filing.
On Tuesday, DHFL defaulted on 60 percent, or Rs 225 crore, of principal repayment on its commercial papers worth Rs 375 crore. The balance will be paid once the surplus cash flow position improves over the next couple of days.
On Wednesday, DHFL shares rose 5.77 percent to Rs 79.75 apiece on the BSE while the benchmark Sensex gained 0.40 percent to end the day at 39,592.08 points.