Recently, Piramal Enterprises (PEL) said its subsidiary Piramal Capital and Housing Finance (PCHFL) has received approval from the Competition Commission of India (CCI) to take over Dewan Housing Finance Corporation (DHFL). The approval brings Piramal a step closer to acquire DHFL, as PCHFL’s 34,250 crores.

The company now expects the concluding endorsement on DHFL resolution from the National Company Law Tribunal in the next two months.
PCHFL’s resolution plan for DHFL had earlier received 94 percent votes by the committee of creditors. The bid amount will enable lenders to recover around 40 percent of their dues, out of the total admitted claims at 87,082 crores.

Ajay Piramal, chairman, Piramal Enterprises, states, “Over the last two years, we have significantly strengthened our balance sheet, and continue to transform our financial services business model from largely wholesale-led to a more diversified one across wholesale and retail financing.”

“This transformation will also be augmented by our impending inorganic initiative with DHFL that is currently undergoing regulatory process,” he added.

PEL, states, “Net sales of its financial service business declined 14 percent year-on-year to 1,478 crores. The company continued to make conservative provisions at 6.3 percent of the loan book at 2,797 crores during FY20. The provisions were made to manage any contingencies arising from the second wave of Covid-19. The capital adequacy ratio of the firm remained at 37 percent during the March quarter, which is the best in the industry according to the company.”