DHFL Venture Capital to raise Rs 250 cr this fiscal

MUMBAI: DHFL Venture Capital, promoted by the leading private sector housing finance company, today said that it would raise Rs 250 crore in the current fiscal domestically to fund real estate projects in Tier-II and Tier-III cities.

"We will raise Rs 250 crore in this fiscal which will be deployed in real estate projects in Tier-II and Tier-III cities," DHFL Vice-Chairman and Managing Director Kapil Wadhawan told PTI.

Wadhawan said that the fund would be raised from financial institutions and High Networth Individuals (HNIs) domestically.

Established in 2005, DHFL Venture Capital had raised Rs 100 crore, its maiden, in 2006 domestically from leading financial institutions and banks. The fund has performed well with over 35 per cent Rate of Return (ROR).

"We will target 30 per cent Internal Rate of Return (IRR) with the upcoming fund too," Wadhwan said, adding that the fund would target both individuals and developers for disbursement.

IRR is a capital budgeting metric used by firms to decide whether they should make investments. It is also called ROR, an indicator of the efficiency or quality of an investment.