Money & Banking

DHFL to finalise stake dilution in life insurance arm by March

PTI New Delhi | Updated on January 19, 2018 Published on January 31, 2016

Dewan Housing Finance Ltd, which owns 74 per cent in DHFL Pramerica Life Insurance (DPLI), is in advanced stage of discussions for selling 23 per cent stake to its US-based partner Prudential Financial.

“We have discussion with Prudential Financial with regard to them increasing stake from current level of 26 per cent to 49 per cent. It is in the final stage,” DHFL Chairman and Managing Director Kapil Wadhawan told PTI.

“Hopefully, a final decision should be reached by March,” he said, adding that final discussion on valuation and other issues are going on.

Dewan Housing Finance Ltd (DHFL) had acquired 74 per cent stake in DLF Pramerica Life Insurance in 2013. Following this, the company achieved the break-even level.

At the end of March 2015, the insurance firm had earned a profit of about Rs 40 crore.

On the capital-raising plan, Wadhawan said the company has also given approval for issuance of preferential shares to promoter Wadhawan Global Capital Private Ltd.

Fund infusion of up to Rs 500 crore would be made by March 2016 and the promoter holding would go up following the issuance of warrant, he said.

The warrants will be convertible into equivalent number of equity shares of Rs 10 each and will be issued at a price not lower than the price arrived at as per the SEBI provisions.

Published on January 31, 2016
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