Bankrupt DHFL acquired by Piramal Group for total consideration of Rs 34,250 cr

In a statement to the exchanges, Piramal Enterprises said, the creditors of DHFL will recover an aggregate amount of Rs 38,000 crore from the DHFL’s resolution, which includes Rs 34,250 crore paid by Piramal Enterprises and Rs 3,800 crore from the cash balance of DHFL. “There were 70,000 creditors of DHFL and most of them are recovering nearly 46 per cent of their pending dues through the successful completion of the resolution process”, the statement added.

According to the resolution plan, Piramal Capital and Housing Finance Ltd. (PCHFL) will merge with DHFL and the merged entity will be 100 per cent owned by Piramal Enterprises Limited. The merged entity will have 301 branches and 2,338 employees catering to approximately a million lifetime customers across 24 states, making it one of the leading housing finance companies in India, focusing on affordable housing segment.

The acquisition of DHFL will enable Piramal to grow its retail book approximately 5 times and will also lead to diversification of the overall loan book, thereby achieving the desired mix of nearly 50:50 retail wholesale mix.

Piramal Enterprises is now also looking to offer used cars and two-wheeler loans; education loans for vocational and online courses; small builder finance to meet construction finance requirements; unsecured business loans; personal loans and loans against securities.