Mumbai: In the resolution of the first insolvency in the financial services room, the Piramal Group has concluded that RS payment is 34,250 crore to take over housing and finance councils (DHFL).
The agreement tends to help banks that have been hit by the collapse of the company.
Payments will improve bank finances that have removed loans to DHFL, whose promoters were accused of fraud.
Overall, financial creditors will receive almost RS 38,000 Crore, including liquid cash with DHFL and RS 19,550 crore bonds.
The amount received by the creditor will be around 46% of the claims they are magical.
SBI, Bank of India and Union Bank will be among beneficiaries.
However, the deposit holder will still get less because they have chosen against the resolution plan, which gives them only for liquidation values.
As a result, they only get 1,241 crore Rs, or 23% of their claims recognized around Rs 5,400 Crore.
Capital of Piramal and Housing Finance (PCCFL) will join DHFL, and the joining entity will change its name to PCLFL.
Chairman of the Piramal Group Ajay Piramal said that in the short term the group will rebalance the loan book to 50-50 between retail and wholesalers, but the retail will become two-thirds of the medium term book.
At present, it is dominated by wholesale exposure.
He said the company would lower the DHFL wholesale book immediately.
When asked whether the group would continue to see the acquisition, Piramal said post-integration, the company would have a debt equity ratio of 3.5: 1, providing enough headroom to obtain if there was an opportunity.
With this agreement, the Ajay Piramal LED group has made a decisive change in the focus on retail loans.
The previous group had brought Jairam Sridharan, a senior executive of the Axis Bank, to grow retail portfolios.
Piramal, which makes his fate in Pharma, change the focus to real estate and diversification into a loan.
Six years ago, the Group had seen IL & FS before the collapse of infrastructure and financial groups.
The Piramal company also parally picked up shares in the capital of Shriram by taking into account the synergy but choosing to come out when things did not succeed in 2019.
In the future, the group would evaluate the insurance business but did not have a plan to enter asset management, the word piramal said.
“This acquisition is in line with our road map to change our financial services business for the past two years.
We collected RS 18,000 Equity Crore and strengthen the balance sheet to take advantage of the great opportunity.
We have significantly reduced the headroom to create significant growth in the entity that joins , “said Piramal.
“The combined entity will have 301 branches, 2,338 employees and more than 1 million customers for life.
We have built a technology platform with advanced analytical machines and AI / ML capabilities, which can be deployed across a larger customer base,” said the Executive Director of the Piramal Group Anand palamal.