Tag: Piramal Capital and Housing Finance Ltd

Piramal Capital merges with DHFL

Banking & Finance

[ad_1]

Read More/Less


Piramal Capital and Housing Finance Ltd (PCHFL) has merged with Dewan Housing Finance Corporation Ltd (DHFL).

“PCHFL has merged into DHFL with effect from September 30, 2021, pursuant to the reverse merger as contemplated under scheme of arrangement provided under the resolution plan,” Piramal Enterprises Ltd said in a stock exchange filing on Friday.

Also read: Ajay Piramal on the challenges faced in acquiring DHFL and the road ahead

Following this reverse merger, DHFL will issue equity shares to the shareholders of PCHFL in accordance with the scheme of arrangement provided under the resolution plan, it further said, adding that once the equity shares are allotted, DHFL will become a wholly-owned subsidiary of Piramal Enterprises Ltd (PEL).

The process is likely to take about four weeks to be completed. The development comes soon after PEL paid ₹34,250 crore for DHFL, completing its acquisition of the housing finance player.

The acquisition of DHFL is in line with a strategic roadmap to transform and expand PEL’s financial services business.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

PCHFL to raise up to ₹1,000 crore through NCDs

Banking & Finance

[ad_1]

Read More/Less


Piramal Capital and Housing Finance Limited on Wednesday announced the issue of secured, rated, listed, redeemable, non-convertible debentures of the face value of ₹1,000 each.

“The Tranche I Issue has a base issue size of ₹200 crore with an option to retain over subscription up to ₹800 crore, aggregating up to ₹1,000 crore,” it said in a statement.

The Tranche 1 Issue opens on July 12, 2021, and closes on July 23, 2021 (with an option of early closure or extension).

Piramal ties up funds from Barclays Bank, Standard Chartered for DHFL buy

PCHFL, is a wholly-owned subsidiary of Piramal Enterprises Ltd. It is a non-deposit taking housing finance company, into wholesale and retail funding and is in the midst of acquiring Dewan Housing Finance Corporation Ltd (DHFL).

Rajesh Laddha, Executive Director and Group Chief Financial Officer, Piramal Enterprises Ltd said the funds raised will be used for retail disbursement. “The retail engine is in motion. We are getting more people and expanding branches,” he told reporters.

Despite the turmoil, DHFL buy is an opportunity for Piramal Group

Target market

Jairam Sridharan, CEO, Piramal Retail Finance said the focus of the business is on the retail segment in Tier 2 and 3 towns. This will get enhanced with the acquisition of DHFL. It is looking to focus on salaried and small business owners in these markets and offer them products such as two-wheeler and used-car financing.

Commenting on the implementation of the DHFL resolution, Laddha said that multiple things are being done. He also noted that there is no regulatory bar for Piramal Group or CoC to go ahead with resolution implementation.

“We are preparing a checklist where all issues will be sorted out. How the NCDs of ₹19,000 crore will be issued and allocated within the CoC to its members. Work is on at the CoC and Administrator’s end. There are small issues with regard to merger, getting DHFL equity and NCDs delisted,” he said.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

Piramal Capital and Housing Finance raises ₹4,050 crore through NCDs

Banking & Finance

[ad_1]

Read More/Less


Piramal Capital and Housing Finance Ltd (PCHFL), a wholly owned subsidiary of Piramal Enterprises Limited (PEL), has raised ₹4,050 crore through issuance of long-term, five-year non-convertible debentures (NCDs) in two tranches.

The first tranche of the NCD issue, amounting to ₹2,000 crore, opened on March 10 with a pay-in on March 12, 2021. The second tranche of the remaining ₹2,050 crore opened on March 18 with a pay-in on March 19, 2021.

“CARE Ratings has assigned an ‘AA’ rating for both the issuances,” the company said in a statement on Monday.

DHFL deal

The fund raise comes just weeks after the Reserve Bank of India gave PCHFL the approval to acquire troubled Dewan Housing Finance Corporation Ltd (DHFL). The total consideration for DHFL was ₹34,250 crore, comprising an upfront cash component of ₹14,700 crore and a deferred component of ₹19,550 crore.

“The five-year NCD issuances of ₹4,050 crore re-affirm the significant improvement of our liabilities side and strength of our balance sheet. We are now well-positioned to tap growth opportunities across both our financial services and pharma businesses,” said Rajesh Laddha, Executive Director, PEL.

The statement noted that PEL has transformed its liabilities profile towards more long-term borrowings and has raised over ₹50,000 crore since April 2019.

“It has raised over ₹32,000 crore of long-term borrowings since April 2019, while significantly reducing the Commercial Paper exposure from ₹18,017 crore in September 2018 to ₹1,050 crore as of December 2020,” it added.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,