June 6, 2017
Aadhar Housing Finance, the company that focuses on lower income segments, will be merged with DHFL Vysya Housing Finance by August this year. National Housing Bank, the housing finance regulator, approved this proposed merger and paved way for the formalities to be completed by August.
Deo Shankar Tripathi, the Chief Executive Officer of Aadhar Housing Finance, told the Economic Times that the company had applied for the next level of approval to the National Company Law Tribunal (NCLT). Aadhar Housing Finance and DHFL Vysya Housing Finance are both owned by Wadhawan Global Capital Pvt Ltd.
International Finance Corporation owns 20% stake in Aadhar Housing while DHFL Vysya is fully owned by the Wadhawan family. As per the merger plan, the family will own 82% stake in the new merged entity and institutions including International Finance Corporation will own the remaining 18%. The proposed name of the merged entity is Aadhar Housing Finance, which has to be approved by NCLT.
The total loan portfolio of DHFL Vysya and Aadhar Housing are Rs.1,800 crore and Rs.3,300 crore respectively. The merged entity will have a total loan portfolio of Rs.5,100 crore and will focus on financing affordable housing, one of the top priorities of the central government.