Piramal Enterprises bought DHFL for 38 thousand crores, paid Rs 34,250 crore to the lenders

MumbaiPiramal Enterprises Limited has bought the crisis-ridden company Dewan Housing Finance Limited (DHFL) for Rs 38,050 crore. Piramal Group on Wednesday completed the acquisition of DHFL by paying Rs 34,250 crore to the lenders. The company said that under the resolution process of DHFL, the lenders including its FD holders will get a total of Rs 38,000 crore.

Ajay Piramal, Chairman, Piramal Group, said the transaction marks the successful completion of the financial services sector under IBC regulations and sets a precedent for future offerings. He said, ‘We have now paid the fixed amount. This transaction is one of the biggest offers ever. We will merge PCHFL and DHFL. The name of the merged company will be Piramal Capital and Housing Finance Limited.

DHFL’s 46% creditors will get dues
Piramal Enterprises Limited will have 100% ownership rights on the merged company. The payment of Rs 34,250 crore made by Piramal Group includes Rs 14,700 crore in cash and Rs 19,550 crore in debt. DHFL has a total of 70,000 creditors, of which about 46 per cent will get their dues through this resolution plan.

The acquisition will give the company access to over one million customers and have a presence in 301 branches across 24 states, the company said in a statement. Also, in the next three or four years, the company plans to have a presence in about one thousand places in the country.

In January, Piramal had won to buy the company.
In January 2021, Piramal Group emerged as the most successful bidder in the race to buy DHFL. The Committee of Creditors (COC) had selected Piramal as the sole bidder through voting on January 15. 94 per cent of DHFL’s lenders voted in favor of the resolution plan of Piramal Group.

Apart from Piramal, American company Oak Tree was involved in this race, which got 45 percent of the votes. Oak Tree had placed a bid of Rs 36,400 crore for DHFL while Piramal made Rs 38,050 crore. DHFL’s lenders voted in favor of Piramal’s offer.

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