Dewan Housing Finance Corp. Ltd. will sell all of its stake in DHFL Pramerica Life Insurance Co. Ltd., equivalent to 50% of the paid-up share capital of DHFL Pramerica, to its wholly owned subsidiary DHFL Investments Ltd.
The stake's estimated preliminary range of the fair market value being sold is between 16.90 billion and 20.20 billion Indian rupees, according to a Feb. 14 release.
DHFL Investments will issue convertible debentures to Wadhawan Global Capital Pvt. Ltd. to fund the acquisition. Dewan Housing Finance will use the funds raised from the stake sale, which is subject to regulatory approval, for expanding its core business and paying off high-cost debt.
As of Feb. 14, US$1 was equivalent to 66.85 Indian rupees.