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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.

International

Pakistan confirms 11th polio case of 2025

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Islamabad, June 2: Pakistan has confirmed its 11th case of wild poliovirus this year after the virus was detected in a child from the northern Gilgit-Baltistan region, the Ministry of National Health Services, Regulations and Coordination said in a statement on Monday.

According to the ministry, the Regional Reference Laboratory for Polio Eradication at the National Institute of Health in Islamabad confirmed the presence of the virus in stool samples collected from a child in Diamer district.

The detection came shortly after the conclusion of the third nationwide polio vaccination campaign of the year, which took place from May 26 to June 1. The campaign reached more than 45 million children under the age of five across 159 districts, including high-risk areas, according to health officials.

Health officials have urged parents and caregivers to ensure their children receive multiple doses of the oral polio vaccine, calling the current campaign a vital opportunity to shield children from the crippling virus, Xinhua news agency reported.

Pakistan reported 74 polio cases in 2024, according to official data.

Pakistan and Afghanistan are the only two countries in the world where wild poliovirus remains endemic. Polio workers have frequently been targeted in attacks, particularly in the northwest and southwest regions.

One of the reasons for the presence of the virus is the refusal of the majority of people to have their children vaccinated. Polio health workers have been victims of targeted killings and attacks by militant groups, who have opposed anti-polio campaigns in the country.

According to the World Health Organization, Polio is a highly infectious viral disease that largely affects children under 5 years of age. The virus is transmitted by person-to-person spread mainly through the faecal-oral route or, less frequently, by a common vehicle (e.g. contaminated water or food) and multiplies in the intestine, from where it can invade the nervous system and cause paralysis.

In 1988, the World Health Assembly adopted a resolution for the worldwide eradication of polio, marking the launch of the Global Polio Eradication Initiative, spearheaded by national governments, WHO, Rotary International, the US Centres for Disease Control and Prevention (CDC), UNICEF, and later joined by the Bill & Melinda Gates Foundation and Gavi, the Vaccine Alliance.

Wild poliovirus cases have decreased by over 99 per cent since 1988, from an estimated 350,000 cases in more than 125 endemic countries to 6 reported cases in 2021. Of the 3 strains of wild poliovirus (type 1, type 2 and type 3), wild poliovirus type 2 was eradicated in 1999, and wild poliovirus type 3 was eradicated in 2020. As of 2022, endemic wild poliovirus type 1 remains in two countries: Pakistan and Afghanistan.

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National

Eagerly waiting for RCB’s victory in IPL 2025, says Shivakumar

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Bengaluru, June 2: Conveying best wishes to the Royal Challengers Bengaluru (RCB) team for making it to the IPL 2025 finals, Karnataka Deputy Chief Minister D.K. Shivakumar on Monday said that the government and people of the state are eagerly waiting for its victory.

Addressing reporters at the Vidhana Soudha, Shivakumar said: “I am happy that the Bengaluru team is playing in the finals of the IPL 2025 tournament in Ahmedabad. The Bengaluru boys, the Royal Challengers Bengaluru, will win. After a long time, they have reached the finals. They have done their best.”

“On behalf of the government of Karnataka and the people, we are all eagerly waiting for their victory. I was informed that a large number of people from Karnataka are travelling to Ahmedabad.”

“I also wish for their success. Let’s hope and pray for it,” Shivakumar added.

The RCB team is taking on the Punjab Kings team in the finals on Tuesday at the Narendra Modi Stadium in Ahmedabad.

On the controversy surrounding actor Kamal Haasan’s statement over the origins of the Kannada language, Shivakumar said: “I don’t want to comment on the issue. I do not know the history. I will check my records, and then I will speak.”

“I don’t want to make it a political issue. We are neighbours; we all have to work and live together. Our water flows to Tamil Nadu, and people from Tamil Nadu come here,” he said.

“We are not enemies, we are friends. I would like to tell everyone to stay calm and patient – nothing is permanent in life,” Shivakumar advised.

Commenting on the controversy surrounding the Hemavathi Express Canal Link, Shivakumar said: “The BJP is politicising the issue. The project was sanctioned during the tenure of the BJP government led by then Chief Minister B.S. Yediyurappa.”

“I am not diverting water to Ramanagara. A few TMCs of water are being diverted to the Magadi region, which also falls under the Cauvery basin. This has been part of an agreement for a long time,” he stated.

On the issue of Congress leaders being appointed as members of the guarantee committees, Shivakumar said: “Aren’t Governors also affiliated with political parties? Look at the Chairpersons of various commissions and statutory bodies – so many appointments have been made by them, and we have done the same.”

“There is no delay in funds for the guarantees. Everything we committed has been allocated in the budget, and we are delivering on it. They are just jealous. Our schemes are being replicated across the country,” Shivakumar said.

“We are releasing funds based on revenue collections. There is a budget allocation, and we will provide the funds accordingly,” he said.

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National

Trying to benefit friends abroad: BJP’s Sinha accuses Cong over questions on ‘Op Sindoor’

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New Delhi, June 2: BJP National Spokesperson Tuhin Sinha on Monday launched a scathing attack on the Congress party for questioning India’s ‘Operation Sindoor’, and suggested that the party seems to be attempting to benefit its ‘foreign allies’.

Speaking to media, Tuhin Sinha said, “The way the Congress party is repeatedly creating doubts about our achievements in ‘Operation Sindoor’, it certainly seems that it is trying to benefit its friends abroad.

“The Congress keeps asking the same question: How many losses did we suffer? What were our casualties? Prime Minister Modi has already responded, and our party has also addressed this seriously. If the Congress wants a clearer answer, it will have to wait.”

He claimed, “This is the same Congress party that has never celebrated Pakistan’s defeats. On May 10, a list was released of Pakistan Air Force air bases that were destroyed by our armed forces. Yet, did we ever see the Congress party celebrate that victory?”

He questioned, “The Congress must decide whose side it is on. Why is it so eager to know our losses when the entire world has acknowledged this as a major achievement and a significant victory for India?”

Sinha further addressed the controversy surrounding US President Donald Trump’s comments, which Congress has frequently referenced.

“Trump has been changing his statements repeatedly. India’s position is clear — this was a bilateral conversation limited to the DGMO level, after which a ceasefire was announced. There is no role for any third party. If a third party gives a statement contrary to our official stance, the Congress should trust its own government and its DGMO rather than mislead Indian citizens with irresponsible remarks,” he told media.

On the Congress’ demand for a special session of Parliament, Sinha questioned the urgency.

“Why is the Congress so restless? The Monsoon Session will begin in less than a month. What is the need for a special session now? Do they want to use it to make statements that become headlines in the Pakistani media? Are they aiming to benefit their foreign friends with such remarks? This is a direct question to Mallikarjun Kharge.”

He added, “All the necessary information regarding the strikes has already been shared multiple times. Even Congress leaders like Manish Tewari and Shashi Tharoor have clarified it abroad. So, the Congress should stop misleading the country.”

On the Murshidabad violence, Sinha professed, “Many pieces of evidence have now emerged proving that the violence was sponsored by Mamata Banerjee’s party. It is appropriate to call it ‘state-sponsored terrorism.’ During the time of the violence, the Waqf law was becoming an issue, and Mamata Banerjee was inciting the Muslim community against it. She even claimed she would not allow anti-terror laws to be implemented in Bengal. Under what law does she have the right to block central legislation in a state? No state has this authority.”

He further added, “By making such statements, Mamata Banerjee was indirectly encouraging those involved in the violence. A committee appointed by the Calcutta High Court has also provided supporting evidence. Whenever the deployment of BSF in Murshidabad is discussed, Mamata Banerjee openly opposes it. One of our party workers approached the High Court, after which BSF was deployed under the court’s order.”

Sinha questioned Banerjee’s opposition to central security forces.

“Why does she hate the BSF? Is it because they’re preventing illegal migration from Bangladesh? Her apparent intention to alter Bengal’s demographic profile is deeply concerning. Many unanswered questions remain regarding the Murshidabad violence. It is alarming that such incidents, involving Trinamool leaders, have become common in Bengal’s border districts.”

Reacting further on illegal Bangladeshi immigrants, Sinha pointed out recent actions taken post ‘Operation Sindoor’.

“In the last few weeks, BJP-ruled states have deported thousands of illegal Bangladeshi immigrants. Gujarat alone deported many. Similar actions are underway in Rajasthan, Uttar Pradesh, Haryana, Delhi, and even Odisha.”

However, he criticised Opposition-ruled states for inaction.

“States governed by the INDIA bloc are actively settling illegal Bangladeshis. The Santhal Pargana division of Jharkhand is heavily impacted, yet the Hemant Soren government shows no interest in tackling it. In fact, illegal immigrants are grabbing tribal lands with the state’s support,” he claimed.

He warned that illegal migration poses a significant threat.

“After ‘Operation Sindoor’, elements from Pakistan and Bangladesh may resort to proxy warfare. The presence of illegal migrants within our borders is a serious national security concern. BJP governments are taking decisive action, and we expect the same from Mamata Banerjee, Hemant Soren, and other INDIA bloc leaders. This is a national issue. No political compromise can be accepted when it comes to India’s security,” he concluded.

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