National Housing Board has given it's nod for merger of Dewan Housing Group companies Aadhar Housing Finance Ltd and DHFL Vysya Housing Finance Ltd and expected it to be completed by August,2017.
"We have received NHB's nod in May and have already applied with the National Company Law Tribunal for the approval. We expect to complete the merger process by August," Aadhar Housing Finance CEO Deo Shankar Tripathi said here today.
International Finance Corporation, which holds 20 per cent in Aadhar Housing, may infuse more capital before the merger is effected.
"There are talks of some more infusion by IFC. If they don't infuse further capital then their holding will slip to 10-11 per cent post merger," Tripathi said.
The promoters had infused Rs 50 crore in Aadhar Housing recently, Tripathi said.
The merger will help to leverage size and footprint and will help in reduction in borrowing cost, he added
Under the scheme Aadhar Housing will be merged into DHFL Vysya. But the merged entity will be named as Aadhar Housing Finance.
Both the HFCs are enagaged in affordable housing segment. Post merger, Aadar Housing will be able to raise public deposit as DHFL Vysya is a deposit taking HFC.
The combined loan book of both the entity was Rs 5100 crore as on March 2017.
Tripathi said by March 2018, the loan book will swell to Rs 8000 crore with the growth potential in the affordable housing category. Total branch network of the combined entity will reach 270 by August, making it one of the largest HFCs in the country concentrating on offering formal credit to the low income group.
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