The merger of Aadhar Housing Finance, a company focussed on the economically weaker sections and lower income group segment, with DHFL Vysya, is expected to be completed this August.
The approval of the National Housing Bank was received in April, 2017 while the National Company Law Tribunal nod was being awaited.
Promoter stake
The Wadhawan family — the promoter group — is likely to have 82% equity in the new company with IFC and other institutions holding the rest, said Deo Shankar Tripathi, chief executive officer (CEO), Aadhar Housing Finance.
The merger will help Aadhar expand its footprint to the south where DHFL Vysya has a strong presence. The combined loan book is expected to be about ₹5,100 crore this fiscal, of which Aadhar will have ₹3,300 crore with the rest being on account of DHFL Vysya.
The merged entity is targeting a ₹8,000 crore loan book.
The new entity, which may retain the Aadhar name, would also be able to take deposits as DHFL Vysya is a deposit-taking company.
