DHFL tanks 9% after reports of sending resolution proposal to lenders soon

Shares of Dewan Housing Finance Corporation fell nearly 9 percent on July 9 even after a media report indicated that the company is likely to present a proposal for a resolution to its lenders on July 11. The stock closed at Rs 70.95 on the BSE.

Troubled DHFL is hopeful to raise Rs 7,000 crore via stake sale to a private equity player.

Sources told CNBC-TV18 that Aion Capital and Cerberus Capital are likely in the lead to acquire DHFL stake while DHFL itself also remains in talks with Lone Star and KKR for a potential deal.

The business channel learnt from sources that the housing finance company proposed to bring down promoter stake from 40 percent to 20-25 percent post the deal.

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Potential private equity investors may have met lenders and sought comfort on continued funding, sources said.

Sources further told the channel that DHFL is expected to propose an extension of repayment tenure as part of the restructuring plan and also seek moratorium, or a new line of credit from banks.

According to the resolution plan, DHFL may have proposed to repay any additional loans extended via securitisation to banks, sources said, adding final resolution plan may take shape in consultation with lenders and SBI Caps.

As per guidelines issued by the Reserve Bank of India (RBI), banks need to start working on a resolution plan within 30 days of default by a borrower. Once the plan is agreed upon, it needs to be implemented within 180 days timeline, failing which banks will have to make excess provisioning.

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