Dewan Housing Finance Corporation (DHFL) is planning to issue non-convertible debentures (NCDs) worth up to Rs 1,000 crore in July to meet its credit disbursal targets for the current financial year.
DHFL also wants to diversify its kitty on the liabilities side. “We usually raise funds through the private placement route but this time we also want to include high net worth individuals and retail investors,” said Kapil Wadhawan, vice-chairman and managing director, DHFL.
The firm disbursed loans worth Rs 2,240 crore in 2008-09 and is aiming to grow its incremental loan disbursal to Rs 3,400 crore this year (2009-10). It currently relies on term loans from banks for 70 per cent of its borrowing needs.
The lead managers for the NCD issue are JM Financial, Enam Securities, ICICI Securities, AK Capital and Axis Bank.
The company had also secured board’s approval for a Rs 105-crore rights issue and would file the issue documents with the capital markets regulator in the next few months, Wadhawan said. The home finance company has posted a 40 per cent rise in net profit to Rs 91.76 crore for 2008-09. Its total income rose from Rs 506.43 crore in 2007-08 to Rs 693.59 crore.
Speaking on the firm’s unlisted subsidiary, Wadhawan Food Retail, which owns brands such as Spinach, Sabka Bazaar and S-Mart, Wadhawan said he was optimistic about the business and the focus was on consolidation. “We plan to infuse Rs 100-150 crore capital in the retail business over the next one year which will include promoter money and debt,” said Wadhawan. He added the subisdiary’s sales per square foot had increased marginally over the last year, but declined to share the figures. DHFL was in the race for public sector lender IDBI Bank’s mortgage subsidiary, the sale was later put on hold.