DHFL

DEWAN FINANCE HOUSING LIMITED

4th biggest housing company
Roughly 1 lakh cr of debt ($14.15 billion)
Owes about ₹40,000 cr to bank alone
One of the biggest player in this sector
35 years of experience
DHFL BOARD OKAYS PLAN TO
CONVERT DEBT TO EQUITY
1. Move will give bank control of mortgage lender,
help resolve debt issues and find a buyer.

2. Having control will allow lender to speed up

their effort to resolve the company debt problem
and find buyer for the asset.

3. Converting whole or part of debt into equity

shares or other securities may result in change
of ownership.
 Crisis-hit Dewan Housing Finance
(DHFL) said on Friday its board had
approved a plan that included
converting debt into equity, even as it
seeks to sell assets and raise more
capital.
 The conversion of debt into equity
may result in a change in ownership,
the company said in a regulatory
filing, adding that the plan still
needed shareholder approval.

 As a result, the non-banking financial
company is undergoing a
restructuring process that is being
deliberated upon by its lenders, to
help it ride out a liquidity crunch and
restart lending.
 DHFL and other shadow banking
firms have been stung by a liquidity
crunch following last year’s collapse
of Infrastructure Leasing & Financial
Services— once one of the biggest
players in the sector.