Wadhawan Global Capital, the parent company of Dewan Housing Finance, has agreed to sell its 70% stake in Aadhar Housing Finance Limited to private equity player Blackstone for an undisclosed amount.
DHFL, which has 9.15% stake in Aadhar, also sold its stake. International Finance Corporation, which has 16.9% stake, and ICICI Bank with 1.5%, are among the other shareholders. Sources said the deal value was around ₹2,500 crore.
Aadhar Housing, which started operations in 2011 with a focus on affordable housing, has ₹9,300 crore worth of assets under management. “The deal will significantly reduce WGC’s outstanding debt,” a statement from the firm said.
The decision is in line with DHFL promoters’ intention to exit non-core assets. According to sources, DHFL, which put Aadhar Housing on the block three-and-a-half months ago, received 16 bids in the first round, eight in the interim bid and five bids in the final round, with one in the closing round.
The DHFL stock has been under pressure since September after the IL&FS crisis broke out. On September 21, the stock tanked a whopping 42%. Last week, after an online portal alleged that promoters had siphoned off ₹31,000 crore, the stock lost 30% in the next three trading sessions. On Friday, it fell another 18%. DHFL has denied the allegations.
“The transaction with Blackstone is a part of our multi-pronged strategy to reduce corporate debt levels and strengthen our balance sheet. The sale unlocks the latent value within the WGC Group while reinstating our immediate and long-term focus on DHFL, the flagship company of Group,” chairman Kapil Wadhawan said.
The transaction is expected to close in the next three months after getting all the requisite regulatory and other approvals.
