The Piramal Group has taken over the Dewan Housing Finance Corporation (DHFL) for a cost of Rs 34250 crore in what marks the first insolvency resolution in the financial services space.
This deal is expected to lend out support to banks that suffered due to DHFL’s collapse.
Financial creditors will reportedly obtain around Rs 38000 crore including the liquid cash with DHFL. They will also attain bonds worth Rs 19550 crore. Union Bank, Bank of India and the State Bank of India (SBI) are amongst the financial creditors who will benefit through this resolution.
This payment will possibly help correct the finances of banks that had written off their loans to DHFL.
On the other hand, the fixed deposit holders will be receiving only 23 per cent of their admitted claims as they had voted against the resolution plan.
The Piramal Capital and Housing Finance (PCHFL) will merge with the DHFL and the integrated entity will be renamed PCHFL, Times of India reports.
This combined entity will be having 301 branches along with 2338 employees and more than 1 million lifetime customers. The Piramal Group maintained that this acquisition is in line with their roadmap to transform their financial services business in the last couple of years.
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