Dewan Housing Finance Corp. Limited (DHFL), a mortgage lender, is most likely to sell most of the shares in its Aadhar Housing Finance Ltd unit. The company has hired an investment bank Rothschild to find a potential buyer for the purchase, confirmed by the persons related to the development.
Aadhar Housing Finance provides home loans to the low and middle-income group (LIG & MIG) with income ranging from Rs 60,000 to Rs 6 lakh per annum. The housing loan provider has a loan book of Rs 1,736 crore by the end of 2016-17 financial year.
The unit was established in 2011 and since then it has scaled its operations across many states including Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Orissa, Jharkhand and Bihar. The home loans are capped at Rs25 lakh. As per the performance, its loan book stood at Rs 933 crore and by end of 2016, it received Rs1,032 crore.
“There would be serious interest from private equity investors. It is too early to talk about valuation, but it could be anywhere between 1.5-3 times the loan books,” says the source related to the development.
Reportedly, Aadhar Housing Finance’s 20 per cent of stakes is owned by International Finance Corp. (IFC), a member of the World Bank Group.