The Hindu Business Line : Dewan Housing gaining ground on expansion plans

The stock moved up by 11 per cent to finish at Rs 86. The traded quantity on the NSE was 1.31 crore shares, and on the BSE, the volume was 74.32 lakh shares. In the last one week, the counter has posted a gain of around 30 per cent.

According to market analysts, the company's plans to ramp up operational scale in housing finance space through different avenues have attracted attention of serious domestic and overseas investors.

The DHFL Managing Director, Mr Kapil Wadhwan, confirmed to Business Line that the company and its private equity subsidiary have chalked out elaborate plans to broad base the business activity and take it to a higher level.

Non-convertible debts

DHFL proposed to issue during this fiscal a series of non-convertible debentures of Rs 500 crore having maturity up to 10 years, he said. Allotment of NCDs on private placement basis of 100 non-convertible debentures (face value of Rs 10 lakh each) for an aggregate amount of Rs 10 crore to ING Vysya Mutual Fund is first in the series. The company is also issuing 25 lakh, one per cent redeemable preference shares of Rs 10 each at a premium of Rs 90 each to fetch Rs 25 crore to ICICI Bank Ltd.

Real estate fund

The Rs 125-crore venture capital fund, a subsidiary of DHFL, has planned to raise $200 million through an offshore fund to be invested in Indian real estate. "The fund, likely to be launched in the US, would get a shape in the next few weeks. The formal launch is expected before March 31, 2007," he added.

Mr Wadhwan explained that the recent purchase of shares in Housing Development & Improvement India Ltd (HDIL), a Wadhwan family real estate outfit, was not an acquisition attempt but a mere investment.

DHFL has picked up 27 lakh equity shares, representing 1.5 per cent of the paid-up capital of HDIL, a closely held unlisted public limited company. Incidentally, the promoters of Dewan Housing have promoted Wadnawan Food Retail Pvt Ltd, a retail chain stores company and it has plans to roll out a chain of retail outlets in the country.

A section in the market expects an unfolding synergy among DHFL group's finance, real estate businesses and the food retail chain in future.

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