Caledonia investment in DHFL

Mumbai, Mar 27 (UNI) The Extraordinary General Meeting of Dewan Housing Finance Corporaton Ltd (DFHL) today approved placement of optionally convertible preference shares (OCPS), worth Rs 53 crore, on a preferential basis to Caledonia Investment Plc, a leading UK based investment trust company.

DHFL managing director Kapil Wadhawan told mediapersons here that each of OCPS can be converted into an equity share of Rs 75 at the end of 13 months from the date of subscription.

Caledonia Investment has been a shareholder in this company and by deciding to increase the investment in DHFL, they have reaffirmed faith in the management of DHFL and its business model, Mr Wadhawan said.

With the approval of OCPS, Caledonia Investment, on conversion, would have a stake o approximately 14 per cent of the expanded paid up capital of the company.

Caledonia CEO Tim Ingram said, ''We are looking forward to a long and successful association. Caledonia has an established reputation as a supportive long-term investor.'' Caledonia has its roots as a shipping company in Calcutta in the 1880s and has a portfolio of singficant investments in India.

DHFL will gain signficantly from the experience and expertise of Caledonia Investement in the mortgage banking industry, Mr Wadhawan said, adding, ''we aim to serve the low and middle income segment in the semi-urban and rural areas of India and this aim will be strengthened by infusion of this fresh capital''.

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