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UK's Caledonia Investments has upped its stake in Dewan Housing Finance (DHFL) from 2.14 per cent to 14 per cent. The investment has been done through the placement of optionally convertible preference shares worth Rs 53 crore ($11.7 million) on a preferential basis. These shares could be converted into equity shares of Rs 75 at the end of 13 months from the date of subscription. Dewan board has approved the transaction.

Housing finance sector has been booming in India.

Meanwhile Caledonia announced that it plans to invest $100-200 million in the Indian market. This will be approximately 5-10 per cent of Caledonia's $2 billion capital. Caledonia Chief Executive Officer Tim Ingram said, "We are keen to pick up stakes in the range of 10-15 per cent in mid-sized domestic companies, whose market capitalisation lies between $300 million and $400 million." The company will look at export-oriented textile companies too for investment. Caledonia has a 12 per cent stake in Alok Industries already. [Via Business Standard]