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DHFL likely to announce $1.5 bn deal with AION Cap today; bank stocks in focus

The deal would bring respite to lenders in mutual fund industry.|
Jul 22, 2019, 09.25 AM IST
NEW DELHI: DHFL is likely to announce a deal with special situations investor AION Capital for a a majority stake in the housing finance company, sources told ET Now.

The deal would lead to infusion of $1.5 billion into the debt-ridden firm. With this, DHFL promoters’ family stake is likely to come down to 10 per cent.

“Deal with AION Cap likely to be announced today,” ET Now quoted sources as saying, adding that no big haircut to lenders is likely. SBI, YES Bank, Union Bank and Bank of Maharashtra are among key lenders to the NBFC.

The deal would also bring respite to lenders in mutual fund industry including Kotak AMC, Axis MF, Reliance MF, Franklin and DSP, among others.

Earlier in the day, ET reported that the lenders to DHFL may propose a six-month moratorium on repayments of around Rs 80,000 crore of outstanding loans under the inter-creditor agreement, with private equity investors likely buying a fifth of the embattled home financier after the debt recast.

As per the report, a new debt restructuring plan will be put up by July 25, and be operational before September 25. The restructuring will enable the infusion of necessary liquidity into the company.

DHFL reported net loss of Rs 2,223 crore in the fourth quarter of FY19, compared with a profit of Rs 134 crore in the last quarter of FY18. The performance reflected in increased provisions and slowdown in disbursements. It has made additional provisioning of Rs 3,280 crore in the fourth quarter of FY19.

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