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Primal Group receives RBI’s approval for DHFL takeover

According to latest reports, the Reserve Bank of India has approved Piramal Group’s deal for the takeover of the embattled mortgage lender DHFL.

The lenders are reportedly set to pass on the proposal to the National Company Law Tribunal (NCLT) by next week as of now.

Moreover, the proposal’s acceptance took place after a month post the Primal Group’s win of the bidding war against competitors like Oaktree.

Further, DHFL’s creditors subsequently voted in favour of Piramal as the winning bidder on January 15.

It is estimated that around 94 percent votes were pro Primal Group, backing the diversified Indian conglomerate.

At least 66 percent votes are required to be constituted in a resolution plan for it to be passed by lenders.

However, the lenders are eligible to vote a preference for more than one bidder.

On one hand, Oaktree which is an American asset management company managed to secure an estimated 45 percent votes.

On the other hand, Adani Capital, another bidder is recorded to have secured 18 percent votes so far.

In fact, some of the lenders are believed to have voted for both Piramal and Oaktree.

Majority of the votes were evidently in favour of Primal Group being a local firm with deep pockets.

Currently, DHFL owes a whooping amount worth Rs.91,000 crore to its lenders.

It’s biggest creditor being State Bank of India has an exposure of around Rs 10,000 crore as per data.

The lenders of DHFL consist of Bank of India, Canara Bank, NHB, Union Bank of India, Syndicate Bank, and Bank of Baroda.

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