Piramal Enterprises - DHFL Integration On Expected Lines; Discharges Creditors Dues: ICICI Securities
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Piramal Capital and Housing Finance Ltd. discharging the consideration to Dewan Housing Finance Corporation Ltd. creditors with 46% recovery run-rate pursuant to resolution plan is on expected lines.
Successful bidding, timely regulatory approvals and improving visibility towards building a diversified book (through DHFL acquisitions), coupled with stable stress in wholesale segment, have triggered re-rating of Piramal Enterprises Ltd.'s financial services business.
Detailed financials will be disclosed post the completion of review by auditors.
Proportion of ‘high risk’ and ‘medium risk’ in DHFL’s retail portfolio and the extent of mark-down of wholesale portfolio will be known then.
In our estimate, net deal consideration (ex-cash and insurance) for DHFL portfolio (post mark-down) is estimated at Rs 215 billion.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.