Piramal Group acquires DHFL for total consideration of Rs 34,250 cr

Piramal Enterprises said on Wednesday it had completed the acquisition of Dewan Housing Finance Limited (DHFL) by paying the consideration amount of Rs 34,250 crore.

The total consideration paid by the Piramal Group of Rs 34,250 crores at the completion of the acquisition, includes an upfront cash component of Rs 14,700 crores and issuance of debt instruments of Rs 19,550 crores (10-year NCDs at 6.75% p.a. on a half-yearly basis).

According to the resolution plan, Piramal Capital and Housing Finance Ltd. (PCHFL) will merge with DHFL and the merged entity will be 100 percent 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 the 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.

Source: Business Standard