Piramal Group paid Rs 38,000 crore to the aggregators of DHFL
Piramal Enterprises announced today that it completed the acquisition of Dewan Housing Finance Corporation (DHFL) for a total consideration of Rs 34,250 crore. As part of the deal, Piramal Capital and Housing Finance Limited (PCHFL) will merge with DHFL, according to a regulatory filing by the global business conglomerate to the stock exchanges today.
Piramal Group paid Rs 38,000 crore to the aggregators of DHFL - which includes Rs 34,250 crore to be paid by Piramal Capital and Housing Finance in cash and non-convertible debentures (NCDs), and Rs 3,800 crore from the cash balance available with the DHFL.
The new entity will retain the name - Piramal Capital and Housing Finance Limited ((PCHFL), according to Piramal Group's statement. The company will focus on affordable financing and will serve more than one million lifetime customers, with a presence in 24 states.
The DHFL insolvency resolution is the first successful resolution under the Insolvency and Bankruptcy Code (IBC) in the financial service sector and is also the largest in terms of value. 94 per cent of the creditors had voted in favor of Piramal's resolution plan, as per the statement.
"The combined entity will have 301 branches, 2,338 employees and over 1 million lifetime customers. We will be a dominant player in the fast growing affordable housing segment. Over the last two years we have successfully built our next-gen technology platform, advanced analytics engine and AI/ML capabilities,'' said Mr Anand Piramal, Executive Director, Piramal Group.
''This acquisition allows us to implement these technologies across a much larger base of customers. The new merged entity is poised to be at the forefront of the digital-first retail lending market in India,'' he added.
On Wednesday, September 29, shares of Piramal Enterprises were last trading 0.81 per cent lower at Rs 2,658.50 on the BSE. Piramal Enterprises opened om the BSE at Rs 2,698.75, touching an intra day high of Rs 2,702.35 and an intra day low of Rs 2,627, in the trading session so far.