Piramal Group on Wednesday said housing finance firm Dewan Housing Finance Corporation (DHFL) creditors and depositors have recovered Rs 38,060 crore from the resolution process.
In an interview with CNBC-TV18, Ajay Piramal, chairman, said out of Rs 38,060 crore, Rs 34,250 crore is paid by Piramal Group and the rest of the cash was there in DHFL. Coming to creditors, they would get 46 percent and the fixed deposit holders will get 23 percent.
Earlier today, Piramal Enterprises announced that it has acquired DHFL by paying the latter's creditors Rs 38,000 crore. This includes Rs 34,250 crore to be paid by Piramal Capital and Housing Finance (PCHFL) in cash and non-convertible debentures, and Rs 3,800 crore from the cash balance of DHFL.
When asked who will be the owner of DHFL, he told CNBC-TV18 that Piramal Capital and Housing Finance Ltd (PCHFL), which is a 100 percent subsidiary of Piramal Enterprises, will merge into DHFL and the name will be changed into PCHFL.
He said the equity will be given by Piramal Capital, "The company is spending is Rs 34,250 crore out of which Rs 19,550 crore is debentures, which have been issued by a Piramal Group and the balance will be in terms of cash and equity which Piramal is providing."
Talking about the timeline of the deal, Piramal said, "The payment has now been made to all the creditors as well. So, the payment is completed now.”
With regards to the court cases, he said there is no stay as far as the company is concerned, "The next step is the merger process which is also defined in the NCLT and that is a matter of perhaps a week or so."
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“Actually the transaction is completed and it's not dependent on the court cases. The court cases have not stayed anything and the court cases are not against us. It is with the committee of creditors (CoC) and they just want to know that the allocation of money should be in a different manner than what has been done," he clarified.
Piramal again specified that the deal was completed.
Talking about the equity structure, he said, according to NCLT approved resolution plan, the existing shareholders of DHFL will be delisted and that will be extinguished. This will now be Piramal Capital, which is 100 percent subsidiary of Piramal Enterprises. That is the entity that will remain."
When asked if they planned to list it at some point, he said, “Piramal Enterprises is listed and it is 100 percent sub, so you can say it is listed."