Piramal to focus on retail with DHFL buy

Completes acquisition; pays ~34,250 crore

THERE'S NO CONFLICT OF INTEREST (WITH TATA SONS)...BUT IF THEY EVER FEEL THERE IS A CONFLICT, OR EVEN IF I FEEL THAT, I WOULD NOT BE ON IT (TATA SONS BOARD)”

AJAY

PIRAMAL,

CHAIRMAN,

PIRAMAL

GROUP

Piramal Enterprises on Wednesday announced it has completed the acquisition of Dewan Housing Finance Corporation (DHFL) by paying a consideration of ~34,250 crore. The acquisition marks the first successful resolution of a financial services company under the Insolvency and Bankruptcy Code.

This transaction will result in a 5x increase in Piramal’s retail book. It will also help it to achieve a lending book equally divided between retail and wholesale in the medium term, from a largely wholesale book. In the long term, the lending book will be focused on the retail side, with 67:33 retail to wholesale mix.

“Our retail assets under management will increase 5x. The lending book will be 50:50 between retail and wholesale. The plan is to reduce the wholesale book in the future from the DHFL side. The long-term plan is to have retail at twothirds of the lending book,” said Ajay Piramal, chairman, Piramal Group.