Mumbai-based Wadhawan Global Capital Group is planning to merge two of its housing finance entities, Aadhar and DHFL Vysya. The merger is expected to be complete by end of this fiscal.

Kapil Wadhawan is the Chairman of both Wadhawan Global Capital and housing finance major Dewan Housing Finance (DHFL). DHFL holds stake in both Aadhar Housing Finance (14.5 per cent) and DHFL Vysya (9.47 per cent).

According to Deo Shankar Tripathi, CEO, Aadhar Housing, the merger is awaiting necessary approvals from shareholders and other stakeholders.

“The merger process has already been flagged. But approvals are pending. By April, the merged entity should start operations,” he said.

Meanwhile, World Bank’s corporate finance arm, International Finance Corporation (IFC), which holds 20 per cent in Aadhar Housing, has also given in-principle approval to the merger.

Aadhar Housing, set up by DHFL and IFC, focuses on home financing for the low-income group. It operates in 13 States. In Tamil Nadu, Karnataka, Telangana, Andhra Pradesh and Kerala, it is DHFL Vysya that has a presence. “Both Aadhar and DHFL Vysya are in the same business. A merger will provide a pan-India presence and help consolidate the business,” Tripathi pointed out.

At present, the book value of the merged entity stands at ₹3,300 crore. However, it is expected to go up to ₹5,500 crore by the end of this fiscal. The name of the merged entity has not been decided yet.

Loan disbursals

Aadhar Housing, Tripathi said, expects to double its loan disbursals to ₹2,100 crore by the end of this fiscal. Disbursals last year stood at ₹1,010 crore.

The company’s loan book is expected to nearly double to ₹3,500 crore in FY17 (from ₹1,810 crore last fiscal).

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