Debt-laden Dewan Housing Finance Ltd's (DHFL) parent company Wadhawan Global Capital (WGC) has agreed to sell its 70% stake in Aadhar Housing Finance (AHFL), while DHFL will also sell its over 9% stock in AHFL as a corporate debt cutting measure.
According to a WGC release here, the company has signed a definitive agreement with US private equity major Blackstone to sell nearly 80 per cent shares of affordable homes firm Aadhar Housing Finance for an undisclosed amount.
"As a part of the deal, WGC will be selling the entire 70% of its stake in the company. DHFL, which holds a 9.15% stake in AHFL, will also be exiting the company as a part of the transaction," the statement said.
"The deal will significantly reduce WGC's outstanding corporate debt."
Commenting on the development, WGC Chairman Kapil Wadhawan said in a statement: "The transaction with Blackstone is a part of our multi-pronged strategy to reduce the corporate debt levels and strengthen our balance sheet.
"The sale unlocks the latent value within the WGC Group while reinstating our immediate and long-term focus on DHFL, the flagship company of Group."
The DHFL stock came under heavy pressure during the week plunging as much as 20% on Thursday following a Cobrapost report that the DHFL promoters routed around ₹31,000 crore through dubious companies and parked it outside India to acquire assets.
Rejecting the allegations, DHFL said it had met all its obligations to its lenders by paying them back over ₹17,000 crore in the last three months.
Later in the week, DHFL said it had appointed an "independent" chartered accountant firm to verify the scam allegations.