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Piramal wins race to acquire DHFL

Piramal Group has won the bid to take over Dewan Housing Finance Corporation Ltd (DHFL), Whereas the Adani Group was also interested in this deal among others. It was the front-runner to acquire the financially stressed Dewan Housing Finance Corporation Ltd (DHFL).

 

 

Ajay Piramal won the bankruptcy bid for Dewan Housing Finance Ltd. Billionaire Piramal received 94% of the votes from the Committee of Creditors (CoC), where there was  minimum requirement for winning a bid is 66% votes.  The other major contender, US-based Oaktree Capital secured around 45% of the votes.

 

The total offer of Piramal was ₹37,250 crore, compared to ₹38,400 crore offered by Oaktree. However, Piramal had offered a higher upfront cash payment. The total dues of DHFL stands at around ₹90,000 crore.

Piramal, in its bid, has offered an additional amount in the resolution process to fixed deposit holders, over and above what the CoC offers them through the IBC resolution.

Amid the tussle to takeover the NBFC, Piramal had said in a statement last week: “We have full faith that the Committee of Creditors, comprising some of the most reputed financial institutions of our country, will make the fair and just choice in the voting process.”

It said that its bid for DHFL offers the lenders the highest upfront cash recovery, has the highest score on the evaluation matrix, is fully compliant with all regulatory norms, and is fully and immediately implementable.