Money & Banking

Aadhar Housing, DHFL Vysya merger likely by August

Abhishek Law Kolkata | Updated on January 12, 2018

Deo Shankar Tripathi (CEO), Aadhar Housing Finance Ltd. Photo: Debasish Bhaduri

Aadhar Housing Finance is likely to complete its proposed merger with DHFL Vysya by August this year. The merged entity is proposed to be named Aadhar Housing Finance.

Part of the Mumbai-based Wadhawan Global Capital, both Aadhar — with operations in 13 States — and DHFL Vysya, present only in the five southern States, are into housing finance. Aadhar focusses on the LIG (low-income group), EWS (economically weaker sections) and mid-income segments.

Dewan Housing Finance Ltd (DHFL) has stakes in both Aadhar Housing Finance (14.7 per cent) and DHFL Vysya (9.47 per cent).

Kapil Wadhawan is the Chairman of both Wadhawan Global Capital and DHFL.

According to Deo Shankar Tripathi, CEO, Aadhar Housing, the merger process is awaiting clearances from creditors and the National Company Law Tribunal.

Clearances from the Competition Commission of India (CCI) and the National Housing Bank (NHB) have already been obtained. NHB’s approval came in May this year.

“We have applied to the NCLT. By August, the merger should happen. Hopefully, we will be retaining the name of Aadhar Housing Finance for the merged entity,” he said.

Merged entity

In the merged entity, the promoters, which include the Wadhawans, will have majority stake of over 80 per cent. World Bank’s corporate finance arm International Finance Corporation (IFC) too will have a stake.

In FY17, Aadhar Housing Finance had a loan book of ₹3,300 crore, and DHFL Vysya, ₹1,800 crore.

“In FY18, the merged entity will see its loan book stand at ₹8,000 crore (over 55 per cent increase). As of now Aadhar and DHFL Vysya together have a loan book size of ₹5,100 crore,” he added.

As Tripathi pointed out, the merged entity will be able to raise deposits, thereby, helping it garner resources. Amongst the two entities, DHFL Vysya can raise public deposits.

Published on June 06, 2017

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