Last updated: 29 Sep, 2021 | 02:59 pm
Piramal Group has completed the acquisition of Dewan Housing Finance (DHFL) for a total consideration of Rs 38,000 crore. Here are the details of the deal:
Piramal DHFL deal
Piramal DHFL news: How big will the merged entity be?
The merged entity combines Piramal’s financial strength, and institutional credibility with DHFL’s geographic footprint and distribution network of 301 branches and 2,338 employees catering to ~1 million lifetime customers across 24 states - making it one of the leading housing finance companies in the country. The table below shows what changes for Piramal post the mega deal.
Piramal acquisition: Synergies from the deal
This deal will help Piramal to take advantage of the government’s thrust on affordable housing. India’s household credit to GDP at 12% is lowest among sizable economies of the world. This indicates a huge untapped market potential for the housing finance business in India . With a major push from the Government of India towards affordable housing, the share of credit active customers in Tier 2 and Tier 3 cities/towns is significantly increasing over the last few years, noted Piramal. Going forward, the company aims to become one of the major players in the ‘Bharat Market.’
Piramal DHFL merger: Management commentary
The acquisition is a major step in the company’s aim to become a dominant player in the fast-growing affordable housing segment. Over the last two years, Piramal Group has built its technology platform, with advanced analytics engine and AI/ML capabilities. “This acquisition allows us to implement these technologies across a much larger base of customers. The new merged entity is poised to be at the forefront of the digital-first retail lending market in India,” Ajay Piramal said.