Yes, distribution margins. These are far too low, and will in-fact harm the margin profile of the overall OTC portfolio.
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I am not able to understand how this news is positive from Piramal. The stock is almost about to touch upper circuit today and the volumes are indicating this will run up for the next few days.
(Disclaimer: invested long back and about to break even now and then looking to exit)
DHFL acquisition will allow Piramal to diversify in retail lending (housing loans) and balance their portfolio away from wholesale loans. Also they will get DHFLâs large customer base as well as its office infrastructure which will allow them to cross sell other financial products. Profit from the deal would be added bonus. (actual recovery less money they are paying) So this is BIG plus for Piramal Enterprises. I guess PEL would demerge into Financial and Pharma by end of FY 23. It will unlock value and rerate the company.
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some prospective
https://twitter.com/Dhruvapandey/status/1402178502971977730?s=20
but supreme court stuff is still pending âŚ
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More than Ajay Srivastavaâs views, I liked interview with Bahram Vakil of AZB Partners (in the latter half of the video) which clarifies lot of doubts. He says banks could receive money within a month once litigation gets thrown out. As per him, Supreme Court would have decided on Wadhwanâs challenge today.
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This doesnât make any sense, due to takeover all assets and liabilities are passed onto new entity. This a generic rule for all transactions from immovable to movable assets.
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If that is there in the IBC codeâŚwhy would someone still challenge knowing that it will be quashed?
NCD & FD holders are panicking, ideally RBI should have objected to the Resolution plan stating the above holders are not taken care off. But they gave the clearance
Also,Itâs not that Piramal is not paying they are paying Rs. 1 for diverted funds 
, so that concludes everything. Now nothing can be done
If Resolution takes longer time due to court issues then Piramal may do out of court settlement with these folks asking them to take huge haircut IMHO.
Since this is the first case of financial company getting resolved under IBC, all the stakeholders in the process ( mainly banks, creditors, regulatory authorities and courts too ) are more worried that one wrong step can create precedence which can be used in future cases. So every one is being extra careful and going extra mile to ensure all the necessary steps are being taken.
Many of the litigations are happening on the expected lines and every one knows that it is futile exercise. But litigants are hopeful that while giving judgement, court may give them some ray of hope which can be used, if not now, then at least in the future.
In other words, DHFL resolution is the guinea pig of the financial company undergoing IBC. So it will take time to get over.
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Demerge only pharma business, for Finance they already have 100% WOS which will be coming up with IPO may be next year, PEL has transferred some assets to this subsidiary too in 2019-20, as revealed in AR.
Piramal one step closer to acquiring DHFL.
DHFL shares will be delisted from exchanges from 14 June (Monday) as per DHFL submission the exchanges.
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NCLT Order- DHFL resolution
Dewan Housing Finance Corporation Limited IA 449-2021 IN CP (IB) 4258-2021 NCLT ON 07.06.2021 FINAL=.pdf (1.3 MB)
Can someone decode this statement from credit rating report in context of anticipated demerger ???
=================
The group has plans to convert PEL into a holding company which will hold investments into pharma and financial services
business in the medium term. As a part of the transformation, the group has transferred its Pharma Business assets from PEL
to Piramal Pharma Ltd (PPL), a wholly owned subsidiary of PEL. The group has divested 20% shareholding in PPL to Carlyle
Group raising Rs.3,500 crore, valuing the Pharma business at ~2.775 billion USD (~Rs.20,500 crore).
====================
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Prashant
My understanding -
It is like HDFC having stake in hdfc bank, hdfc AMC ⌠OR like TATAs having stake in TaMo, TaSteel, TCS âŚ
An update(or confession of sort 
) - I sold off 60% of my DHFL default NCD holdings today. Received email from IR regarding voting on revised resolution where all the categories of debt holders will be paid only 40%. Thus, not very lucrative arbitrage was left & thought of freeing up the cash to deploy in other opportunities. The reason for not selling entire lot was liquidity. Iâll be selling off the rest over the coming week.
Lesson learnt : - Although it was a pure speculative position and the gain was capped initially at 2 lakhs per account, I wanted a hang of junk debt value investing. I guess its still a long way to go in India bt this case is certainly a start.
@BudFox :- Now I have the resolution document full copy with me. Let me knw if u wanna go thru it as a case study⌠
Others too can DM me for the same.
Relevance to this thread : - Apart from a follow-on to my earlier discussion with @BudFox regarding this, DHFL acquisitn plays a key role in valuation of Piramal financial services business. Also, at certain point in this whole takeover saga, Piramal vs. DHFL junk debt was an interesting investment propositn to consider.
Disclosure :- Invested in Piramal Enterprises. Transaction in last 30 days.
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Piramal Pharma has completed the acquisition of Hemmo Pharmaceuticals Private Ltd for cash consideration of Rs 775 crore and earn-outs linked to achievement of milestones.
In March, Piramal Enterprises, the parent company of Piramal Pharma, had announced the proposed acquisition.
âWe wish to inform you that PPL has completed the acquisition of Hemmo on 22nd June, 2021 and the transaction is now closed,â Piramal Enterprises said in a regulatory filing on Wednesday.
The development marks Piramal Pharmaâs foray into manufacturing of peptide APIs (active pharmaceutical ingredients), complementing its existing offerings.
Hemmo is one of the few pure-play synthetic peptide API manufacturers in the global marketplace. With the addition of Hemmoâs capabilities, PPS would gain access to the growing peptide API market and enhance its ability to offer integrated services to its customers globally
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