Dewan Housing Finance Corporation Ltd (DHFL) on Wednesday said it will shortly divest its full stakes in subsidiary firms DHFL Pramerica Asset Managers and DHFL Pramerica Trustees.

The non-banking finance company has been facing liquidity crisis and has recently defaulted on its repayment obligations. The company has resorted to various modes of fund mop-up including selling stake in subsidiary firms to meet its debt obligations.

The Securities and Exchange Board of India (Sebi) vide its letters on June 25, 2019, addressed to DHFL Pramerica Asset Managers Pvt Ltd (DPAMPL) has granted its prior approval for proposed change in controlling interest of DPAMPL and for amendment in trust deed, subject to certain conditions, DHFL said in a regulatory filing.

DHFL has already entered into a binding term sheet with PGLH of Delaware Inc (Prudential) for divestment of its stake entire shareholding of 50 percent in DPAMPL (17.12 percent being held directly and 32.88 percent being held by its wholly owned subsidiary, DHFL Advisory & Investments Pvt Ltd).

The term sheet agreement also applies for selling DHFL's entire shareholding of 50 per cent in DHFL Pramerica Trustees Pvt Ltd (DPTPL). Further, the share purchase agreements for the said transactions have also been executed by the company.

"The divestment of the company's entire shareholding in DPAMPL and DPTPL to Prudential is expected to be completed shortly," it said in the filing.

In the latest, the company Tuesday defaulted on 60 percent of principal repayment on its commercial papers worth Rs 375 crore. The company had said that it defaulted on principal repayment on Commercial Papers (CPs) worth Rs 225 crore, while the payment on rest of Rs 150 crore (40 percent) was done.

DHFL also said the balance of Rs 225 crore will be paid once the surplus cash flow position improves over the next couple of days. Its shares closed 5.77 percent up at Rs 79.75 apiece on the BSE.