Enterprises on Friday said that its subsidiary, Piramal Capital and Housing Finance Ltd (PCHFL), has merged with debt-ridden Dewan Housing Finance (DHFL), which has paid Rs 34,250 crore to the creditors of the troubled housing finance company. . PCHFL merged into DHFL Piramal Enterprises said in a regulatory filing, pursuant to the reverse merger with effect from September 30, 2021, as envisaged under the arrangement plan provided under the resolution plan.

“Consequent to the reverse merger, DHFL shall issue such number of equity shares to the shareholders of PCHFL, i.e. to Piramal Enterprises Limited (PEL), as per the scheme of arrangement provided under the resolution plan,” it said.

Upon allotment of equity shares to PEL, DHFL will become a wholly owned subsidiary of PEL, stating, Piramal Enterprises Ltd. will acquire 100 per cent of the equity share capital in DHFL.

“The acquisition is in line with a strategic roadmap to transform and expand the group’s financial services business. The acquisition provides the company with an inorganic growth opportunity and leverages operational synergies.”

In January 2021, 94 per cent of DHFL’s creditors voted in favor of Piramal Group’s resolution plan under the Insolvency Bankruptcy Code (IBC).

In November 2019, reserve Bank of India Referred to DHFL – which was then the third largest pure-play mortgage lender – for resolution under the code.

It was the first finance company to be referred to NCLT By RBI in exercise of special powers under section 227 of IBC.

DHFL had gone bankrupt with loans of over Rs 90,000 crore from various lenders including banks, mutual funds and individual investors holding fixed deposits with the company.