Piramal Group completes DHFL acquisition for Rs 38,000 crore

Piramal Group on Wednesday announced the completion of the Dewan Housing Finance Corporation (DHFL) takeover. Piramal Group said that the company has discharged the consideration to the creditors of DHFL.

This confirms CNBC-TV18 newsbreak.

As part of the announcement, the creditors of DHFL (including FD holders) would recover an aggregate amount of Rs 38,000 crore from the resolution process of DHFL. This amount comprises of:

(i) Rs 34,250 crores to be paid by PCHFL as a combination of cash and Non-Convertible Debentures and

(ii) an amount of Rs 3,800 crore, which is the entitlement of creditors (as per the resolution plan), from the cash balance available with DHFL.

The group in a statement informed that most of the DHFL creditors are recovering nearly 46 percent via the resolution.

The acquisition marks the first successful resolution under the IBC route in the financial services sector. In value terms, the transaction is among the largest resolutions till date, setting the precedent for future resolutions in the sector, Piramal Group said.

According to the resolution plan, Piramal Capital and Housing Finance Ltd. (PCHFL) will merge with DHFL and the merged entity will be 100 percent owned by Piramal Enterprises Limited.

"The transaction will lead to a reduction in weighted average borrowing cost by nearly ~130 basis points and should further improve the Asset Liability Management (ALM) profile of our financial services business," Piramal Enterprises said.