Piramal Enterprises (PEL) on Thursday 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 Rs 34,250-crore bid has already been approved by the Reserve Bank of India in February 2021.
The company now expects the final approval on DHFL resolution from the National Company Law Tribunal in the next two months.
PCHFL’s resolution plan for DHFL had earlier received 94% votes by the committee of creditors. The bid amount will enable lenders to recover around 40% of their dues, out of the total admitted claims at Rs 87,082 crore.
Ajay Piramal, chairman, Piramal Enterprises, said: “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 said net sales of its financial service business declined 14% year-on-year to Rs 1,478 crore. The company continued to make conservative provisions at 6.3% of loan book at Rs 2,797 crore 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% during the March quarter, which is the best in the industry according to the company.
The parent firm, PEL, reported a net profit of Rs 748 crore during the March quarter, compared with Rs 807 crore in Q4FY20.
