Piramal Group said on Thursday India's central bank had approved its takeover of Dewan Housing Finance Corp, once the country's fourth-largest housing finance company, before it defaulted on its debt. Lenders voted last month in favour of the group's takeover bid, worth 372.5 billion rupees ($5.1 billion). "The Reserve Bank of India (RBI) has approved the DHFL resolution plan from Piramal Capital and Housing Finance, submitted by the committee of creditors," the Piramal Group said in a statement.
The RBI did not immediately respond to an email request for comment. Discussions on restructuring DHFL's debt ran for months, with Adani Group, Piramal Group and U.S.-based asset management company Oaktree Capital Management being invited to bid for its entire loan book.
Of DHFL's total debt of almost 1 trillion rupees, banks were owed 400 billion rupees.