Low-cost housing development company, Dewan Housing Finance Corporation, is set to raise $100 million. Dewan Housing has partnered with the International Finance Corporation, which has a 20% stake in the company, to establish a finance company focused on the low and middle income segments of the population.
One of the largest housing finance company in India, Dewan Housing Finance Corporation will be raising Rs. 500 crore ($100 million) via qualified institutional placement.
In a notification to Bombay Stock Exchange, the company informed that the QIP will come with a floor price of Rs. 255.48 per share.
In 2010, Dewan Housing, in collaboration with International Finance Corporation (IFC) set up Aadhar Housing Finance to provide housing finance to low and low-middle income households in the Low Income States of India including, Uttar Pradesh, Madhya Pradesh, Bihar, Chhattisgarh, Jharkhand, and Orissa.
To ensure that it remains focussed on the lower segment, Aadhar has fixed its maximum loan amount at Rs. 6 lakhs.
Within 8 months of operations Aadhar has set up 9 branches spread across three states and plans to have at least 15 branches by the financial year end.
IFC holds a 20 percent equity stake in the company. In September last year, DHFL sold portfolio worth Rs. 27cr to Aadhar Housing Finance.