Piramal acquires DHFL by paying creditors Rs 38,000 crore
The company has paid a total consideration of Rs 34,250 crore for the completion of the acquisition.
September 29, 2021 / 01:46 PM IST
Piramal Enterprises on September 29 announced that it has acquired Dewan Housing Finance Corporation (DHFL) by paying the latter's creditors Rs 38,000 crore.
This includes Rs 34,250 crore to be paid by Piramal Capital and Housing Finance (PCHFL) in cash and non-convertible debentures, and Rs 3,800 crore from the cash balance of DHFL.
The new entity will retain the name PCHFL. It will serve over one million lifetime customers, have a presence across 24 states with a network of 301 branches and will have a portfolio with a 50:50 retail-wholesale mix.
In the financial services sector, this is the first successful resolution under the Insolvency and Bankruptcy Code (IBC) and this is also the largest in terms of value.
Ninety four per cent of the creditors gave the plan the go ahead.
Piramal has said that this acquisition is in line with a transformation they have been executing over the past two years by raising Rs 18,000 crore in equity and reducing their debt-to-equity ratio significantly.
Moneycontrol was the first to report that creditors of DHFL are set to receive the money within three working days after Piramal won a bidding contest for the troubled housing financier.
(This is a developing story. Please check back for more details)