Piramal group moves towards completing DHFL acquisition
The financial creditors of Dewan Housing Finance Corporation Ltd (DHFL) will reportedly get paid over the next few days as the Piramal group moves towards completing the acquisition of the mortgage lender.
A report in BloombergQuint, quoting sources said that the creditors led by State Bank of India (SBI) signed a debenture transfer agreement.
This agreement will allow the lenders to take over debentures issued by Piramal Group against DHFL’s loans.
Following this, the Ajay Piramal-led entity will pay the Rs 12,700-crore upfront cash consideration out of its over Rs 37,000 crore bid for DHFL.
After this transaction is completed, the group can fully take over the assets and businesses of DHFL under the Insolvency & Bankruptcy Code (IBC).
In January this year, the Piramal group had won the bid for DHFL after a majority of the creditors voted for its bid over competitor Oaktree Capital.
Its resolution plan for DHFL received approval from the National Company Law Tribunal (NCLT) in June. Last month, the top officials of Piramal Enterprises had said that the group was on track to complete the transaction within 90 days of NCLT approval.
The group expects the acquisition will not only bring a huge growth in its loan book but also create a large India-wide platform that will enable it to deliver sustained growth and profitability in the years to come.
The Rs 37,250 crore resolution plan of Piramal Capital & Housing Finance includes Rs 12,700 crore in upfront cash, Rs 3,000 crore from interest income on the books of DHFL and Rs 19,500 crore in the form of NCDs which are due after 10 years.
The Piramal group has arranged funds from Standard Chartered Bank and Barclays Bank to finance the acquisition.
US private equity fund CA Rover Holdings, part of Carlyle Group, on Tuesday sold a 3.4 per cent stake in SBI Cards and Payment Services Ltd for Rs 3,267 crore through open market transactions.
According to bulk deal data available with the National Stock Exchange, the private equity firm sold a total of 3.2 crore shares. The shares were sold at an average price of Rs 1,021.05.