Mumbai: Mortgage lender Dewan Housing Finance Corp Ltd plans to raise up toRs500 crore via Tier-1 capital, a top official said on Tuesday.
“Board meet will be held in next couple of days. We are yet to decide by what instruments we will raise the funds,” chairman and managing director Kapil Wadhawan told reporters.
Dewan Housing also plans to raise up to Rs4,500-5,000 crore via debt to fund expansion in FY11, Wadhawan said.
“We will raise debt funds through various sources like bank term loans, refinance from National Housing Bank and non-convertible debentures,” he said.
The mortgage lender will set up a joint venture with IFC, Washington, for low cost housing loans, Wadhawan said.
Dewan Housing would own a majority stake in the venture, he said. Details of the joint venture, expected to be operational in couple of months, were being worked out, he said.
Dewan Housing is also aiming at a lending target of over Rs5,000 crore in 2010-11, he said.
It is expected to lend over Rs3,500 crore in 2009-10, he said.
The company expects to maintain net interest margins at 3% in the current fiscal.
“All indications are that there is tightening of interest rates, but we are confident of maintaining net interest margins at 3 percent this year,” he added.
At 3:10 pm, shares in the firm were up 3.12% at Rs221.60 in the Mumbai market that was down 0.22%.