NCLT approves Piramal’s `37,250-cr bid for DHFL

The Mumbai bench of the National Company Law Tribunal (NCLT) has approved Piramal Capital & Housing Finance Ltd’s resolution plan for debtridden Dewan Housing Finance Ltd (DHFL). The order is subject to the outcome of the appeal in the appellate tribunal and the Supreme Court.

Piramal Group has offered Rs 37,250 crore to DHFL’s creditors. This includes Rs 12,700 crore in upfront cash, Rs 3,000 crore cash from the interest income earned on the existing cash on DHFL’s books, another Rs 1,000 crore for the insurance stake, and Rs 1,000 additional cash for interest income after the NCLT approval. This takes the total cash for the creditors at Rs 17,700 crore. The remaining Rs 19,550 crore worth of non-convertible debentures will be repaid over 10 years.

According to sources, shares of DHFL would be delisted post-acquisition as per the IBC guidelines and Sebi delisting norms. Also, the Piramal company may merge itself with DHFL, for which a call would be taken after all legal and regulatory clearances are obtained, reports said.

Piramal Capital’s resolution plan for DHFL had received 94 per cent votes by the committee of creditors (CoC). The bid amount will enable lenders to recover around 40 per cent of their dues, out of the total admitted claims at Rs 87,082 crore.

A statement from Piramal Group said, “The approval from NCLT is a significant milestone in DHFL's resolution and an affirmation of the sanctity of the IBC process in India.”

Former DHFL promoter Kapil Wadhawan has moved the Supreme Court to get a stay on the NCLAT order that stayed an earlier order of the NCLT asking the CoC to consider the settlement offer put forward by Wadhawan.