DHFL buy...

On the retail side, it will also look at offering used cars and two-wheeler loans, education loans for vocational and online courses, small builder finance to meet construction finance requirements, unsecured business loans, personal loans, and loans against securities.

With the completion of the acquisition, Piramal Capital & Housing Finance will be merged with DHFL in the weeks to come. The merged entity will focus on affordable housing with a smaller ticket size. “The merger will happen in the next two weeks. It will serve the market in tier I-III cities,” he said.

There will be significant improvement in the number of branches, as well as geographical locations Piramal has footprint in after the acquisition. From 10 states and 40 cities, the presence of the merged entity will increase to 24 states and 236 cities and towns. The customer base will increase to nearly 1 million, making it one of the most dominant players in the affordable housing market.

The merged entity will have a book size of around ~60,000-65,000 crore, with 301 branches and 2,338 employees.

The total consideration paid by Piramal Group for acquiring DHFL in the corporate insolvency resolution process is ~34,250 crore, which includes an upfront cash component of ~14,700 crore and issuance of debt instruments of ~19,550 crore (10-year non-convertible debentures at 6.75 per cent per annum on a half-yearly basis).

In a statement to the exchanges, Piramal Enterprises said the creditors of DHFL will recover an aggregate amount of ~38,000 crore from DHFL’S resolution, which includes ~34,250 crore paid by Piramal Enterprises and ~3,800 crore from the cash balance of DHFL.