India's Wadhawan Global Capital Pvt. Ltd. is selling its loan distribution business Andromeda Sales and Distribution Pvt. Ltd. to U.K.-based metal trading company Metdist Group for 1.5 billion rupees, Mint reported Aug. 20, citing two people aware of the development.
The sale is part of Wadhawan's efforts to raise capital to meet debt obligations at the group's debt-laden unit, Dewan Housing Finance Corp. Ltd. The group has sold its affordable housing finance business Aadhar Housing Finance Ltd. and education financing company Avanse Financial Services Ltd.
Dewan Housing Finance had defaulted multiple times on bondholder payments since June and owes close to 900 billion rupees to banks and other creditors.
Dewan Housing Finance did not respond to emails about the matter, the publication reported. A senior executive at Metdist declined to comment and efforts to reach the CEO of Andromeda did not elicit a response, it added.
As of Aug. 19, US$1 was equivalent to 71.53 Indian rupees.
