Piramal has completed the acquisition of Dewan Housing Finance Limited (DHFL) for Rs 34,250 crore which includes a cash component and non-convertible debentures. This is the first successful resolution of a financial services company under the Insolvency and Bankruptcy Code (IBC).
The total consideration of Rs 34,250 crore includes an upfront cash payment of nearly Rs 14,700 crore and issuance of debt instruments of nearly Rs 19,550 crores (10-year NCDs at 6.75% p.a. on a half-yearly basis). 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.
