Piramal Enterprises today announced that it has completed the acquisition of Dewan Housing Finance Corporation (DHFL) for a total 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 trading group to the stock exchanges today.
Piramal Group made payments of Rs 38,000 crore to aggregators of DHFL – including Rs 34,250 crore to be paid in cash and non-convertible debentures (NCDs) by Piramal Capital and Housing Finance and Rs 3,800 crore from cash balances available with DHFL Huh.
According to the Piramal Group statement, the new entity will retain the name – Piramal Capital & Housing Finance Limited (PCHFL). The company will focus on affordable financing and serve over one million lifetime customers with a presence in 24 states.
DHFL Insolvency Resolution is the first successful resolution under the Insolvency and Bankruptcy Code (IBC) in the financial services sector and also the largest in terms of value. According to the statement, 94 percent of the creditors had voted in favor of Piramal’s resolution plan.
“The combined entity will have 301 branches, 2,338 employees and over 1 million lifetime customers. We will be a major player in the rapidly growing affordable housing segment. Over the past two years we have successfully built our next generation technology platform, Advanced Analytics Engine and AI/ML capabilities,” said Mr. Anand Piramal, Executive Director, Piramal Group.
“This acquisition allows us to apply these technologies to a much larger base of customers. The newly merged entity is poised to be at the forefront of the digital-first retail lending market in India,” he said.
On Wednesday, September 29, the shares of Piramal Enterprises were trading at Rs 2,658.50, down 0.81 per cent on the BSE. Piramal Enterprises opened the BSE at Rs 2,698.75 in the trading session so far, touching an intraday high of Rs 2,702.35 and an intraday low of Rs 2,627.