DHFL acquisition unaffected, says Piramal Group after NCLAT directive

Piramal Group, that is all set to acquire Dewan Housing Finance (DHFL) for Rs 38,050 crore, said in a statement on Friday that the latest directive by National Company Law Appellate Tribunal (NCLAT) will not impact its acquisition. “The DHFL acquisition by Piramal Group remains unaffected and the business integration continues as envisaged. The integration comprises assimilating into Piramal’s culture and ethos of people, practices and processes,” it said in a statement.

The NCLAT on Thursday had directed DHFL lenders to reconsider their decision regarding the valuation of the financial firm's avoidable transactions while approving the insolvency resolution plan submitted by Piramal Capital & Housing Finance Ltd.

Piramal in a statement added that most of the appeals filed by several parties against its resolution plan were disposed of on January 27, barring one. However, in one of the appeals, the party had challenged the “distribution of proceeds (if any) from fraudulent transactions to the benefit of the Resolution Applicant”. 

The company said that the NCLAT had asked the Committee of Creditors (CoC) to reconsider that particularly. “We have analysed the detailed judgment of the NCLAT and consulted our legal advisors. We are confident and will continue to pursue the matter as multiple legal options are available to us for our future course of action, including approaching the apex court,” the company stated. 

In September last year, Piramal Group had acquired DHFL for a consideration of Rs 34,250 crore, which will be paid in a combination of cash and non-convertible debentures, and Rs 3,800 crore as the entitlement of the creditors per the resolution plan. 

Piramal Group said that it has retained over 3,000 employees of the DHFL Group and are also adding over 2,000 new jobs in the merged entity. 

Also read: Piramal Enterprises acquires DHFL for Rs 38,000 cr