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Dewan Housing set to acquire home fin firm

Mumbai-based Dewan Housing Finance Corporation Ltd (DHFL) is taking the inorganic route to enhance its market share.

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Mumbai-based Dewan Housing Finance Corporation Ltd (DHFL) is taking the inorganic route to enhance its market share. The Bombay Stock Exchange-listed company, which is the country’s second largest private sector housing finance company, is set to make an acquisition in this space.

Though details of the potential acquisition and the costs associated with it are not available, Dewan Housing Fin board met on Thursday to take a final call on the buy.
When contacted, Kapil Wadhawan, vice chairman and managing director of Dewan, refused comment on the matter.

However, in a statement issued to the BSE, the Dewan Housing Fin board of directors said the company has been granted an approval for the acquisition of an unlisted housing finance company. The board also authorised Wadhawan to take appropriate action as per their directive.The new acquisition, once concluded, will be Dewan Housing Fin’s second since 2002.

In July 2003, the private housing finance company acquired Vysya Bank Housing Finance Ltd (VBHFL), a unit of Vysya Bank, for an estimated Rs 40 crore. Dewan Housing Fin bought 85.91% stake in VBHFL. Presently, the company, along with its promoters, holds 91% stake in VBHFL.

In the quarter ended September 30, 2008, loan disbursements stood at Rs 509.54 crore up from Rs 428.20 crore in the previous quarter, a growth of 19%. Dewan Housing Fin’s total assets were at Rs 5,022.42 crore as on September 30, 2008.
Wadhawan said the company is targeting fresh loan disbursements of Rs 1,000 crore to take the total disbursements in the current fiscal to Rs 2,000 crore.
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