DHFL deal with pvt equity fund AION Capital faces hurdles over valuation

Promoters of the company, the Wadhawans, are ready to dilute their stake, which is currently at 39.2%, so that strategic investors get joint or majority control

Significant expected non-performing assets (NPAs) in Dewan Housing Finance Corporation’s (DHFL) loan portfolio could turn out to be a roadblock in its ongoing talks with private equity fund AION Capital, a joint venture between ICICI Venture and Apollo Global Management.

According to people in the know, due diligence of DHFL, which is still in its early phase, estimated a significant haircut in the loan portfolio between Rs 20,000 crore and Rs 30,000 crore on an asset under management of over Rs 111,000 crore. This could effectively reduce the valuation of the company much lower than its current market capitalisation of