Piramal Group Chairman Ajay Piramal has become the new owner of DHFL

Dhfl Loan

Dewan Housing Finance Corporation (DHFL), the bankrupt housing finance company under financial tightness, corruption charges and bank debt, has got a new owner. Piramal Group Chairman Ajay Piramal has become the new owner of DHFL. DHFL creditors have approved the bid of Piramal Enterprises. DHFL said in a regulatory notice sent to the stock exchanges on Sunday that the bid of Piramal Enterprises was approved at the COC meeting held on January 15, 2021. DHFL said, the Committee of Creditors accepted the offer from Majority to Piramal Capital and Housing Finance Limited under Section 30 (4) of the Insolvency and Bankruptcy Code (IBC). 

Piramal's proposal from DHFL's Committee of Creditors (COC) received 94% of the vote, while the other contender for the deal was American's Oaktree Capital with only 45%. Let me tell you that minimum 66% votes were required to win this bid. Ajay Piramal has managed to buy DHFL despite a lower bid from Oaktree Capital. Ajay Piramal's company had proposed a total of Rs 37,250 crore to buy DHFL, while Oaktree's proposal was worth Rs 38,400 crore. But, the Piramal Group got the deal done by offering more upfront cash payment. Piramal Enterprises will pay creditors Rs 12,700 as upfront cash. 

The merger will happen after approval from NCLT Let me tell you that after the deadline of bidding is over, Oaktree Capital had proposed to give Rs 1700 crore more than its bid to buy DHFL, but this maneuver did not work and the creditors took the resolution plan of Pirimal Group Stamped out Now as soon as this resolution plan is approved by the National Company Law Tribunal (NCLT), DHFL will be merged with Piramal Capital and Housing Finance Limited.  

Oaktree Capital can approach the court Oaktree Capital warned that it would take legal action if its offer was not considered. In such a situation, Oaktree Capital can now move the court. Immediately before voting, Oaktree Capital wrote a letter to the creditors of DHFL alleging that COC was undermining its offer by Rs 2700 crore and unfairly benefiting the Piramal Group. Oaktree had said that its offer was Rs 4503 crore more than the offer price of Piramal Enterprises by market value. 
These banks owed so much to DHFL Banks have around Rs 90,000 crore left on DHFL. DHBI has Rs 10,083 crore from SBI and SBI Singapore, Rs 4125 crore from Bank of India, Rs 2681 crore from Canara Bank, Rs 2434 crore from NHB, Rs 2378 crore from Union Bank, Rs 2229 crore from Syndicate Bank, Bank of Baroda. Rs 2075 crore, Indian Bank Rs 1552 crore, Central Bank of India Rs 1389 crore, IDBI Bank Rs 999 crore, and HDFC Rs 361 crore. 


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