International Finance Corporation (IFC) is looking to lend up to $70 million (Rs 400 crore) to Dewan Housing Finance Ltd (DHFL). Simultaneously, there will be a co-investment of an undisclosed amount from the Canada Climate Change Program (CCCP) where IFC will act as an implementing entity for CCCP to support climate change investments.

The project is intended to support the DHFL in growing its assets, increasing reach and improving the market share.

Established in 1984, DHFL is now the second largest private housing finance company in India. It offers both housing loans (house purchase, construction, extension and project loan) and non-housing loans (loan against property, lease rental financing and purchase of commercial premises).

Its shareholders include the Wadhawan family and other promoters owning 36 per cent while the remaining 64 per cent stake is in the public domain. Caledonia Investments holds around 8.54 per cent. Sequoia Capital also owns 4.4 per cent through an investment entity.

Headquartered in Mumbai, DHFL has 122 branches, 72 service centres, 24 camp locations, eight regional processing units and four central processing units across India. The group, as a whole, is present across 448 locations and reaches out to all economic segments.

Earlier this week, IFC said it was planning to buy up to 20 per cent stake in DHFL-promoted Avanse Financial Services Pvt Ltd for Rs 12.5 crore ($2.3 million). Avanse is a specialised non-banking finance company (NBFC) focused on providing education loans for higher education.

(Edited by Sanghamitra Mandal)

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