Dewan Housing Finance Corporation (DHFL) has closed the deal to sell stake in Aadhar Housing Finance to investment firm Blackstone, sources told CNBC-TV18.

The DHFL promoter group will get Rs 800 crore from the transaction and the company will utilise parts of Aadhar deal proceeds and securitisation of portfolio to pay its non-convertible debentures (NCDs) dues on June 11.

Dewan Housing Finance Limited (DHFL) shares gained 6.5 percent after chairman Kapil Wadhawan told CNBC-TV18 in an exclusive interview that the company is not facing any solvency issues and is well on track with the NCDs pay-out.

Earlier, DHFL shares plunged 10 percent on Friday, extending previous session's fall, after rating agencies Crisil and Icra downgraded the company's Rs 850-crore commercial paper to ‘D’ from ‘A4+’ and ‘A4’, respectively. The ratings downgrade came a day after the mortgage lender delayed interest payment worth Rs 1,150 crore to the investors of NCDs.

However, DHFL chairman Kapil Wadhawan told CNBC-TV18 that terming the crisis as a solvency issue was a misnomer. “I have heard some market experts talk about solvency issues, about DHFL being tagged with some other companies which have had similar problems from different sectors. We are a financial institution, we have underlying assets which keep on giving us cash flow even today. Now if you abruptly stop the lending activity for a large institution like us with more than Rs 1.25 lakh crore worth assets under management and expect us to start paying down the liabilities of all creditors, even a bank today would not survive."

First Published:Jun 10, 2019 4:29 PM IST