Dewan Housing Finance looks to raise a major chunk of its required ₹50,000 crore this fiscal from banks, external commercial borrowings and capital markets, as urbanisation, increase in workforce, nuclear families and affordability are driving demand, Santosh Nair, president and chief business officer of the company, said.
Wadhawan Global Capital owns 37.32% share in the company.
In April, Dewan Housing Finance raised ₹1,000 crore through masala bonds. In June, the firm raised ₹11,000 crore through non-convertible debentures. “There will not be an another NCD issue in the near future. We are looking at various other options such as ECBs, domestic and foreign banks, and public deposits,” Mr. Nair said.
ADVERTISEMENT
“There is also high cash on our balance sheets. We are very confident of raising ₹50,000 crore by the end of this year. There are enough places to borrow and there are multiple sources. We want to have enough of liquidity with us. As of now, we are quite capitalised,” he added.
The current investment in housing is estimated at ₹7 trillion and India requires ₹120 trillion to meet its housing shortage needs, according the company. Dewan Housing Finance is targeting two categories of households — one with an income of between ₹20,000 and ₹ 40,000 per month and the other in the ₹10,000-₹20,000 bracket.
Housing finance companies are growing at a CAGR of up to 18%, according to CRISIL Retail Finance (Housing) Report.
ADVERTISEMENT