Piramal Capital initiates sale of Rs 5,500 cr DHFL bad loan portfolio

A Piramal spokesperson declined to comment, while a JM Financial ARC spokesperson did not respond to requests for comments.

Piramal has asked interested bidders to submit expressions of interest where the offer amount is a mark-up of at least 10% to the base offer of ₹2,550 crore. The bids can be made in all cash basis or cash-plus-security receipts basis, where 15% of the bid amount will be paid in cash and the remaining in security receipts. Security receipts are quasi debt instruments, which are redeemed when the ARC recovers the underlying debt.

Agencies

Piramal has received an overall purchase consideration of ₹2,550 crore, which includes 15% cash payment and 85% in security receipts. The receipts will be subscribed by Piramal Capital or its affiliate(s). Piramal has been selling bad loans to clean up the stressed book of DHFL, having acquired the distressed mortgage lender in a bankruptcy auction.

“As part of the DHFL acquisition, (we) inherited a bunch of wholesale loans. And from the time of acquisition which was September 2021, we have been consciously trying to sell those whether it’s NPAs, PTCs or whatever the case may be,” Anand Piramal, executive director, Piramal Group, had said last month.

In September 2021, Piramal had acquired DHFL for ₹34,250 crore, involving ₹14,717.4 crore of cash. It also issued bonds to DHFL lenders for the balance ₹19,532.5 crore.