The Hindu Business Line : Dewan Housing shareholders okay pref issue

Shareholders of Dewan Housing Finance Ltd on Monday approved the issue of optionally convertible preference shares to Caledonia Investments Plc, a UK-based investment trust, and optionally convertible warrants to Wadhawan Holding Private Ltd, a promoter group.

The issue to Caledonia Investments is for Rs 53 crore, the preference shares of face value Rs 25 each allotted at a premium of Rs 50 each, with an option for conversion of the same into equity shares of face value Rs 10 each carrying a premium of Rs 65 per share after 13 months but before the 18th month from the allotment.

On conversion, Caledonia Investments would have a stake of around 14 per cent of the expanded paid-up capital of the company. It owns 2.18 per cent through secondary market acquisitions.

The issue of warrants to Wadhawan Holdings are also at Rs 75 per warrant, with the option for conversion into equity shares of face value Rs 10 and a premium of Rs 65 per share.

It is quite unusual to find a company which in the foreseeable future will grow between 30 per cent and 35 per cent in the next five years, said Mr Tim Ingram, CEO, Caledonia Investments, explaining the company's decision at a news briefing here on Monday.

Including this investment, Caledonia plans an investment of between $150 million and $200 million in India, he said.

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