DHFL is going to sell its stake in the next 2 weeks.

DHFL is probably to complete a stake sale within two weeks as they clean up the asset-liability discrepancies with credit restructuring. The business that recorded a large drop in the fourth quarter would research proposals that could breathe new life after almost nine months of investor stress.

In the next two weeks, the Board will meet to examine the possible suggestions and determine the way forward. DHFL is capable of continuing as a business on its own by being capable of monetizing its assets, securing financing from bankers and shareholders, reorganizing its liabilities and resetting its operations.

“These economic statements have been created on the grounds that the business is an ongoing issue in perspective of all the activities presently underway,” stated DHFL. “We are defining strategic investors that are close to completion and will take equity investors in DHFL to strengthen their capital base,” stated DHFL over the course of the weekend. Aion is included in the competition of private equity investors.

Observations by the National Housing Bank for the year ended 31 March 2018 have an impact on the ratio of capital adequacy, which has fallen to 10.24%. NHB instructed that the company respond to all statements by the end of July in a specific way.

During the fourth quarter of the 2018-19 financial years, DHFL recorded a net loss of Rs 2,223 crore. The figures were reduced by enhanced supplies and disbursement slowdown. DHFL recorded a profit of Rs 134 crore during the same quarter last year. In the fourth quarter of 2018-19, it provided an extra Rs 3,280 crore. Net loss in 2018-19 was Rs 1,036 crore for the entire year, against a profit of Rs 1,240 crore in 2017-18.

Since February 2019, its credit ratings have been declining consistently. The management aims to monetise their assets and discusses selling their retail and wholesale portfolios with banks and international financial institutions. It is in talks with the banking and lending consortium to reformat its bonds. Asset under management increased by 8% to Rs 1,19,992 crore for the entire year.

“We have fulfilled all our financial obligations since the last 9 months and have been looking to restore company normality as soon as possible,” stated Kapil Wadhawan, Chairman and Managing director of DHFL. “The goal of DHFL is to further safeguard all parties including-large or tiny-creditors and shareholders.

As of September 2018, DHFL provided repayments of Rs 41,800 crore, mainly through asset securitization and refunding collections. Credit ratings for DHFL were decreased to “default grade” on 5 June 2019. The capacity of the company to raise funds was significantly impaired and the company remained nearly idle.

The firm is in a state-of-the-art phase of submitting its resolution method under the inter-creditor agreement (ICA). The ICA will review and conclude by 25 July 2019 the terms and conditions of the grant method and implement this by 25 September 2019.