Piramal’s equity and housing loan portfolio to almost double with Dhfl merger



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Piramal Capital and Housing Finance Limited (PCHFL), the housing finance arm of Piramal Enterprises, said on Wednesday that its loan portfolio would almost double in size after its merger with Dewan Housing Finance Limited (DHFL).

Speaking to the media after announcing the launch of their upcoming Rs 200 crore non-convertible debenture (NCD) issue, Piramal Group CFO Rajesh Laddha said that once the PCHFL and DHFL merger is complete, the The first loan portfolio will be Rs 32,354 crore. as of March 31, 2021, at nearly Rs 60,000 crores. Laddha said the group’s overall loan portfolio, including PCHFL, will reach around Rs 70,000 crore after the merger.

“Piramal Capital & Housing Fin Ltd is in the process of acquiring DHFL … DHFL will become a 100% subsidiary of Piramal Enterprises Limited (PEL) after the acquisition,” Laddha said, adding that the company was in the process of closing the agreement. as soon as possible, and the implementation of the acquisition stages was underway.

Piramal Enterprises Limited plans to eventually merge its pharmaceutical businesses into a separate entity and only own the financial services business, the company said.

“The wholesale mix: retail loan portfolio will drop to 50:50 immediately after the merger with DHFL (from 91: 9 from FY20),” Rajesh Laddha said in response to CNBC-TV18’s question on synergies .

“The acquisition of DHFL will allow us to evolve … we obtain more than 4 lakh of active clients in the mass market, which is our area of ​​intervention … DHFL will provide us with a branch network of more than 250 branches, which will lower the cost of funds, ”Laddha said.

PCHFL’s loan book stood at Rs 32,354 crore as of March 31, 2021, with the non-commercial book at Rs 27,922 crore and the retail book at Rs 4,431 crore at FY21.

“The acquisition of DHFL will help diversify the portfolio and grow the retail book,” said Jairam Sridharan, CEO of Piramal Capital.

Piramal Capital and Housing Finance Limited’s resolution plan for DHFL was approved by lenders at the bankrupt mortgage company in January this year, and by the National Company Law Appeals Tribunal in June. Piramal Group had previously said it hoped to complete the acquisition sooner rather than later, with lenders expecting the deal to close by the third quarter of the fiscal year.

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