Non banking finance company (NBFC), Dhadanpani Finance, is diversifying into infrastructure lending. Its debt restructuring package is expected to be reviewed at the corporate restructuring forum scheduled on December 23. Lenders have firmed up a restructuring plan for debt to the tune of Rs 140 crore.
At its meeting on December 18, the board approved a proposal to increase the capital base and issue optionally convertible cumulative redeemable preference shares, the company informed the Bombay Stock Exchange. To reflect a strong business focus, it also gave its nod for changing the name of the company to DFL Infrastructure Finance.
Previously backed by US-based hedge fund D B Zwirn & Co, the company planned to rope in non-resident Indians as partners, an official said.
Currently, DFL offers financing for tractors, construction equipment, commercial vehicles, multi-utility vehicles and cars.
“The focus on infrastructure finance does not mean we would stop working on our present business areas. We will take up business that fits our strategy”, the official said.
The final corporate debt restructuring (CDR) package was approved in September. The finance charges of Rs 5.22 crore accounted for in the September quarter include Rs 5.33 crore debited by banks as interest. This amount is extended to undergo a downward revision upon the implementation of the CDR package.
Dhandapani had raised Rs 2.15 crore through a public offer in 1993 and had listed its shares on the Ahmedabad, Mumbai and Chennai stock exchanges. It began its operations as a deposit-taking NBFC. However, in 2005, it decided to pre-close and repay the public deposits due to prohibitive costs in servicing obligations.