Piramal Group acquire DHFL for Rs. 34,000 crores
The diversified global business conglomerate company acquires Dewan Housing and Finance Limited over Rs. 34,250 crores. Piramal Group has a presence across healthcare, life sciences, drug discovery, healthcare information management, financial services, and real estate.
On Wednesday, the company has completed the acquisition process of DHLF. The move indicates the first successful presentation of a financial services firm supporting the Insolvency and Bankruptcy Code (IBC).
According to the source, the conglomerate company paid a total amount at the time of accession which includes an upfront cash component of Rs. 14,700 crores and issuance of debt instruments of Rs. 19,550 crores.
“STEP BY STEP, PLACE BECAME PROPERTY. PROPERTY BECAME A MORTGAGE. AND MORGAGES BECAME DERIVATIVE INVESTMENTS.”
PG Statement Details:
In its statement, Piramal Groups states as all the creditors of DHFL will collect over Rs. 38,000 from the DHFL’s resolution. However, the creditors’ amount comprises Rs. 34,250 crores paid by Piramal and the balance of Rs. 3,800 crores by DHFL.
Further, there are around 70,000 creditors under DHFL. Moreover, cent percent of creditors have received around 46% of their pending dues through the resolution process.
As of the resolution plan, Piramal will merge its capital and housing finance business with DHFL. The entity will name as PCHFL. On the other hand, the merged firm will own by Piramal Enterprises Limited.
According to the market reports, the merged firm has around 301 branches with 2,338 employees providing to almost a million-lifetime customers across 24 states. Further, the acquisition remains the best opportunity for Piramal to increase its retail book nearly 5 times. Besides, the move will also benefit vital diversification of all loan books.