- DHFL brought under Piramal group
- Acquisition is completed through reverse merger
The Piramal Enterprises has declared that the Dewan Housing Finance Limited (DHFL), caught in severe financial problems, has been merged with it with effect from Sep 30 using the method of reverse merger. As part of the merger, the Piramal group cleared DHFL loans to the tune of Rs 34,250 crore to creditors. Those who have deposited their savings in DHFL fixed deposits and the creditors received a total of Rs 38000 crore as part of the financial settlement, the Pilramal group claimed.
The Piramal Capital Housing Finance Limited – a part of the Piramal Enterprises Limited (PEL)– will issue equity shares to its existing shareholders in four weeks, transferring 100 per cent of the DHFL shares to the Piramal Enterprises. The merger would be helpful to the Piramal group to expand its activities, PEL said in a statement.
The DHFL advanced loans on a large scale and sustained losses to the tune of Rs 90,000 crore. In this backdrop, the Piramal group approached DHFL with a plan to resolve the debt crisis. In fact, 94 per cent of the creditors of the DHFL voted in favour of the plan. In a latest development, the merger has been accomplished.
