Piramal Enterprises on Wednesday announced it has paid the consideration for acquiring Dewan Housing Finance Corporation Ltd (DHFL).
“The total consideration of ₹34,250 crore paid for the completion of the acquisition,” PEL said in a stock exchange filing.
This marks the first successful resolution under the IBC route in the financial services sector and is also amongst the largest resolutions till date in terms of value.
Most of the DHFL creditors are recovering nearly 46 per cent through the resolution.
Ajay Piramal, Chairman, Piramal Group said, “We are very pleased to announce the consideration payment made towards the completion of this exciting acquisition. This accelerates our plans to become a leading, digitally oriented, diversified financial services conglomerate that focusses on serving the financial needs of the unserved and underserved customers of our country.”
Piramal Capital and Housing Finance Ltd (PCHFL) will now merge with DHFL and the resultant entity will be named as PCHFL.
The merger will create one of the leading housing finance companies in India, focussed on affordable financing, the statement further said.
It will have access to over 10 lakh customers with presence in 24 States and a network of 301 branches and 2,338 employees.
The merged entity will also have an India-wide platform to address diverse financing needs of the under-served ‘Bharat’ market. It will also significantly diversify the loan book towards retail financing with nearly 50:50 retail wholesale mix in the near-term.
The acquisition will also help PCHFL scale up its retail loan book to nearly five times.