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Piramal pays consideration for acquisition and merger of DHFL

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 Piramal Enterprises Limited on Wednesday announced that it has completed payment for the acquisition of Dewan Housing Finance Corporation Ltd (DHFL), marking the first successful resolution under the IBC route in the financial services sector.

The National Company Law Tribunal, Mumbai Bench (NCLT), had earlier accorded its approval to the resolution plan of Piramal Group in relation to the CIRP (Corporate Insolvency Resolution Process) of DHFL.

In value terms, the transaction is among the largest resolutions till date, setting the precedent for future resolutions in the sector.

Speaking on the occasion, Ajay Piramal, Chairman, Piramal Group said, “We are very pleased to announce the consideration payment made towards the completion of this exciting acquisition. This accelerates our plans to become a leading digitally oriented, diversified financial services conglomerate that focuses on serving the financial needs of the unserved and underserved customers of our country.”

“An important characteristic of any advanced economy is a robust insolvency code. The landmark bankruptcy reforms have made it possible to solve complex resolutions like this in a more complete and timely way.”

Anand Piramal, Executive Director, Piramal Group said, “The combined entity will have 301 branches, 2,338 employees and over 1 million lifetime customers. We will be a dominant player in the fast-growing affordable housing segment. Over the last two years we have successfully built our next-gen technology platform, advanced analytics engine and AI/ML capabilities. This acquisition allows us to implement these technologies across a much larger base of customers. The new merged entity is poised to be at the forefront of the digital-first retail lending market in India.”

In January 2021, 94 per cent of the Creditors of DHFL voted in favour of Piramal’s resolution plan. Approvals were also obtained from the RBI, CCI and NCLT for the completion of this transaction. As a part of the process, Piramal Capital and Housing Finance Ltd (PCHFL) will merge with DHFL. The merged entity will be 100 per cent owned by Piramal Enterprises Limited.

The creditors of DHFL (including FD holders) would recover an aggregate amount of Rs 38,000 crore from the resolution process of DHFL. This amount comprises of Rs 34,250 crore to be paid by PCHFL as a combination of cash and Non-Convertible Debentures and an amount of Rs 3,800 crore, which is the entitlement of creditors (as per the resolution plan), from the cash balance available with DHFL.

There were 70,000 creditors of DHFL and most of them are recovering nearly 46 per cent of their pending dues through the successful completion of resolution process.

The total consideration paid by the Piramal Group of Rs 34,250 crore at the completion of the acquisition, includes an upfront cash component of Rs 14,700 crore and issuance of debt instruments of Rs 19,550 crore (10-year NCDs at 6.75 per cent per annum on a half-yearly basis).

The merged entity combines Piramal’s financial strength with DHFL’s geographic footprint and distribution network of 301 branches and 2,338 employees catering to 1 million lifetime customers across 24 states – making it one of the leading housing finance companies in the country.

It creates an India-wide platform focused on the affordable segment (with average loan ticket size of nearly Rs 17 lakh) to address the diverse financing needs of the under-served and unserved ‘Bharat’ market – that represents Indian budget conscious customers at the periphery of metros and in Tier I, II and III cities.

Over the last two years, Piramal Enterprises strengthened its balance sheet to take advantage of such large opportunities by raising Rs 18,000 crore of equity. It reduced net debt-to-equity and shifted towards long-term borrowings, thereby creating a headroom for significant growth in the merged entity. The acquisition is a major step under the execution of a strategic roadmap to transform our financial services business.

This transaction will not only grow the retail loan book to 5 times, but also lead to a significant diversification of the overall loan book. This paves the way for achieving nearly 50:50 retail wholesale mix in the near-term. The company will leverage the “phygital” lending platform driven by Machine Learning (ML) and Artificial Intelligence (AI), including the new mobile app.

In addition, the transaction will lead to a reduction in weighted average borrowing cost by nearly 130 basis points and should further improves the Asset Liability Management (ALM) profile of our Financial Services business.

India’s household credit to GDP at 12 per cent is lowest among sizable economies of the world, indicating a huge untapped market potential for the housing finance business in India. With major push from the Government of India towards affordable housing, the share of credit active customers in Tier 2 and Tier 3 cities/towns is significantly increasing over the last few years.

The acquisition will now provide an India-wide infrastructure with a large branch network as well as a sizable customer base that will leverage the technology-driven multi-product retail lending digital platform. It enables the company to significantly grow and diversify the retail loan book through product innovation, customised offering and superior customer experience. The share of retail financing is likely to improve to 50 per cent in near-term and 67 per cent in mid-to-long term. The growth in the retail loan book will facilitate capital efficiency in the financial services business.

The company will offer services such as used cars and two-wheeler loans; education loans for vocational and online courses; small builder finance to meet construction finance requirement; unsecured business loans; personal loans and loan against securities.

Business

Maharashtra govt issues notice to Ola Electric over missing trade certificates

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Pune, April 4: The Maharashtra government has issued a notice to Ola Electric Mobility Limited, asking the company to explain why some of its stores in the state are operating without valid trade certificates.

According to the notice from the Transport Commissioner’s Office, several Ola Electric showrooms and service centres in Maharashtra are being run without the required documents.

The notice also accuses the company of illegally selling vehicles through these unauthorised outlets.

According to media report, the notice, dated March 31, gives the company three days to respond.

“This is a very serious matter, and you are requested to provide an explanation within three days as to why action should not be taken against your company for this act,” the notice said.

It was reportedly signed by Joint Transport Commissioner Ravi Gaikwad. However, as of now, Ola Electric has not responded officially on the issue.

The notice follows an earlier inspection drive initiated by the state transport authority.

On March 21, NDTV Profit had reported that Maharashtra’s Transport Commissioner had instructed all Regional Transport Offices (RTOs) to carry out special checks at Ola Electric stores.

These inspections reportedly revealed that many outlets were functioning without the necessary trade certificates.

As per the Central Motor Vehicles Act, 1988, and the Central Motor Vehicle Rules, 1989, every vehicle distributor or manufacturer must obtain a trade certificate to register and sell vehicles.

In addition, Rule 35 of the same law states that each showroom or dealership must have a separate certificate from the concerned registration authority.

The shares of the electric two-wheeler manufacturer closed lower by Rs 1.42 or 2.63 per cent to close the intra-day trade at Rs 52.62 on the National Stock Exchange (NSE).

Earlier this week, the company saw a sharp drop in its electric two-wheeler sales in March 2025, selling 23,430 units — a steep 56 per cent decline compared to the same month last year.

The company said on April 1 that the fall was mainly due to disruptions caused by its recent shift to handling vehicle registrations in-house, a process that began in February.

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Business

Cabinet okays 4 projects worth Rs. 18,658 crore to expand track network of Indian Railways

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New Delhi, April 4: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved four projects to expand the track network of Indian Railways with an investment of Rs 18,658 crore, according to an official statement issued on Friday.

The four projects covering 15 districts in three states – Maharashtra, Odisha, and Chhattisgarh – will increase the existing network of Indian Railways by about 1,247 km.

These projects include Sambalpur-Jarapda 3rd and 4th Lines, Jharsuguda-Sason 3rd and 4th Lines, Kharsia-Naya Raipur-Parmalkasa 5th and 6th Lines, and Gondia-Balharshah doubling

The enhanced line capacity will improve mobility, providing enhanced efficiency and service reliability for Indian Railways. These multi-tracking proposals will ease operations and reduce congestion, providing the much-needed infrastructural development on the busiest sections across Indian Railways. The projects are in line with PM Modi’s vision of a New India, which will make people of the region “Aatmanirbhar” with comprehensive development in the area, which will enhance their employment/ opportunities, the official statement said.

The projects are part of the PM-Gati Shakti National Master Plan for multi-modal connectivity which entail integrated planning and will provide seamless connectivity for movement of people, goods and services.

With these projects, 19 new stations will be constructed, enhancing connectivity to two Aspirational Districts (Gadchiroli and Rajnandgaon). The multi-tracking project will enhance connectivity to around 3,350 villages and about 47.25 lakh population.

Kharsia-Naya Raipur-Parmalkasa lines will provide direct connectivity to new areas such as Baloda Bazar, and this will create possibilities for the setting up of new industrial units, including cement plants, in the region.

These lines are essential routes for the transportation of commodities such as agricultural products, fertiliser, coal, iron ore, steel, cement, and limestone. The capacity augmentation works will result in additional freight traffic of magnitude 88.77 MTPA (Million Tonnes Per Annum), the statement said.

With rhe Railways being an environment friendly and energy efficient mode of transportation, the new projects will help both in achieving climate goals and minimising logistics costs of the country. The projects are expected to reduce oil import by 95 crore litres and lower CO2 emissions by 477 crore kg, which is equivalent to planting 19 crore trees, the statement added.

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‘Waqf Bill will benefit Muslims, no threat to religious sites,’ says Shahabuddin Razvi

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New Delhi, April 4: Maulana Shahabuddin Razvi, the National President of All India Muslim Jamaat, expressed his support for the Waqf (Amendment) Bill, stating that it would significantly benefit Muslims and ensure the betterment of their socio-economic conditions.

He praised the passage of the bill in both the Lok Sabha and Rajya Sabha and thanked the Modi government.

Maulana Shahabuddin, giving his first reaction to passage of bill, said, “The Waqf Amendment Bill does not harm common Muslims, it will benefit them. The only ones who stand to lose are the Waqf land mafias who have illegally occupied valuable land. Common Muslims will not be affected by this.”

He further stated that the bill is aimed at protecting the interests of the poor and vulnerable sections of the Muslim community.

The Maulana explained that the revenue generated from Waqf land would be used to improve the socio-economic status of impoverished Muslims, particularly those unable to afford quality education for their children.

“The income from Waqf land will be used for the benefit of poor Muslims, helping children from low-income families get a better education, and assisting orphans and widows in their development,” he said.

Maulana Shahabuddin assured that the funds would be used according to the intention of the Waqf and aimed at opening schools, colleges, madrasas, and orphanages to uplift the educational and social standing of underprivileged Muslims.

Addressing concerns about the impact on religious sites, Maulana Shahabuddin stated, “The Waqf Amendment Bill poses no threat to religious sites. Mosques, madrasas, Eidgahs, cemeteries, and shrines will remain unaffected. The government will not interfere with these religious institutions in any way.”

He further cautioned the Muslim community against falling prey to misleading political narratives, urging them not to be swayed by political figures seeking to exploit the situation for their own gain.

“Some politicians are misleading Muslims for their own interests. I appeal to the Muslim community to not fall for their provocations,” he added.

In the early hours of Friday, the Rajya Sabha approved the Waqf (Amendment) Bill, 2025, with a majority of 128 votes against 95, following a heated debate. The Bill had been passed in the Lok Sabha just a day earlier, after nearly 12 hours of intense discussions.

Drawing a parallel to the Citizenship Amendment Act (CAA) controversy, Maulana Shahabuddin recalled how political leaders misled the Muslim community, causing unwarranted fear that Muslims would lose their citizenship.

“When the CAA law was introduced, Muslims were misled into believing that their citizenship would be revoked. However, after its implementation, it became clear that no Muslim in India lost their citizenship, and instead, many were granted citizenship,” he stated.

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