For me all the DHFL NCDs are debited and nothing is credit 
, how about others here ?
this is what happened with me as well -
Conference call for DHFL Acquisition.
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Seems many people got the NCD money as per buzz in twitter
Yes . DHFL has been delisted and records are not available on BSE
Piramal Capital is merged into DHFL pursuant to reverse Mergerā¦
What are the benefits of reverse mergerā¦Could anyone pls throw some light.
- The HFC license need not be transferred/reapplied.
- All Assets of DHFL are seamlessly absorbed into the PEL fold, anyways DHFL after IBC does not have any liabilities. In the Insurance Arm/etc since DHFL continues to be the owner, no permissions are needed, less paperwork.
Since after reverse merger, they renamed the company as PCHFL again (retained old name), for most it does not matter.
There could be more reasons.
Added - Oct 11th. - Per articles DHLF was involved in financing some Slum redevelopment work, and loans to smaller builders, significant portion of the 40K Cr loan book that is questionable. Seems DHFL has the development rights for these projects. Even the transfer of these rights or any other paperwork/permission is not needed with this reverse merger approach.
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This shows again how shrewd deal maker Ajay Piramal is.
Now- everyone is saying Piramal got a good deal, but DHFL deal was available to everyone (including Adani ) last year, but not many applied or raised the bid to beat Piramal. In fact there was hardly anyone in India who financial muscle to bid for it.
Piramal paid the long game as he was preparing for it for years (in term raising money), but hopefully PEL shareholder will benefit going forward. Bear in mind that if you are investor in PEL for last 5 years, your returns are non-existant wherein the market has doubled . So sooner or later market shall reward PEL shareholder, hopefully soon.
Note- Invested.
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Demerger announced
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BSE Notice about demerger
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From Concall- It will take around 9 months for the transactions to complete. So looks like Q2/Q3 of 2022.
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When do we get to know the record date for the demerger?
When PEL is ready for all procedural/legal formalities, they will announce the record date. I guess this is at least 7/8 months away.
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If you are PEL shareholder in last 5 years, you have been diluted by about 10-20% through the 2-3 rights issues. You also have had to share the pharma spoils with Carlyle which got in at a good price - though perhaps it might work out okay since it gives a quality ānameā as a shareholder.
I guess, for any business that runs on leverage you cannot buy and hold - you need to be mindful of macro, underwriting quality and liquidity - ratings be damned. Thatās the key learning for me in holding thru this period.
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Consolidation is real estate sector has been playing out as discussed by Mr. Khushru Jijina on multiple concalls in past 2 years. Since PEL is aligned with top builders, they will be beneficiary of the upcycle in the real estate as can be seen from Godrejās and Sobhaās recent announcements. Wholesale lending still forms majority of FS business as can be seen from the pie chart on page 8 of the presentation. Barring negative surprises in the DHFL books (apart from whatever already disclosed), I feel FS business has crossed the bump and has good future ahead with cross selling (to DHFL borrowers) opportunities opening up.
It would be interesting to watch how Piramal grow his pharma business in next few years, as he is very good at it and now has a able partner in Carlyle on board.
All in all, interesting times ahead. Todayās price action was mainly due to short term investors moving out of the stock (as demerger would generate tax losses and some ambiguity on stock prices till Piramal pharma gets listed) and it may continue for next day or 2.
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We have to keep an eye on that 45,000 crores for which Piramal paid only 1 rupee, I donāt think that entire money will go in drain, anything coming out of it, say even 4k to 5k recovery from that kitty is going to be a windfall gain.(Though it can be more nobody knows) Remember all the cases are against recovery of that amount only 63 moons case also saysā¦that money should come to NCD, FD and creditors of erstwhile DHFL.
Experts in this group can throw some light on thisā¦
Majority of it is the slum development project DHFL financed to its own related party, Thats my recollection of various reading about it from years. atleast $2-3 Billion DHFL lent to its own companies engaged in slum development which didnāt go well lead to to collapse of DHFL. Legally now PEL owns that land and have the rights to develop it.
DHFL has a builder loan book of about Rs 40,000 crore. Of this, 25-30% would be loans given to real estate builders engaged in the slum rehabilitation projects. There are about 10 such developers.
Read more at:
Interesting to see how it evolves, as there will be need of political connections to get something out of these projects, PEL with RIL jack (family relations) i think there is something politically they can do about it.
Since these are written off to Rs 1 , there is no downside but there could be huge upside as and when in future they manage to get all the approvals from Gov to redevelop it.
There are about $1-2 billion dollars of loans (written down to Rs1) given to small builders who couldnāt complete the projects as DHFL funding to them collapsed overnight, I think those are decent viable projects which PEL should be able to re- structure, sell or even finish it themselves using PEL reality brand.
Even though markets see PEL wholesale lending in the mumbai as negative or bad business or risky business, i see it as their USP. They have decades of Experience in Mumbai real estate market as a builder, Mr. Khushru Jijina is one of the top mumbai reality guy who understand it better than many of us analysts. I think there was pain but markets worried abt it way more than required, PEL took very calculated risks 4-5 % of which went bad , they recovered some of it and they learnt, they are much better lender today then they were.
3-4 years from now PEL will be a quality lender / company in the eyes of very same skeptical market today.
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Pharma Presentation from Piramal.
I stumbled upon this while looking into Complex Hospital Generics. Thought this might add some value.
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Article is behind the paywall but highlights are as below
- PPL last 10 years CAGR of 14%
- 13th largest CDMO in the world, complex hospital generics 4th largest inhaled anaesthesia
- Comparing with Diviās who have clean regulatory record (similar to PPL) having 40% operating profit margin and asset turn of 2 is being valued at 16 P/S ratio.
- PPL have 22% operating margin and asset turn of 1. So assuming P/S of 10, pharma valuation can come to 61,000 Cr
- With P/BV of 1.5x, FS business will be valued at 27,000 Cr + remaining equity of 10,000 Cr at P/BV of 1, total valuation of FS will be 37,000 Cr
- So combined valuation comes to 98,000. With current market cap of 65,000 Cr, current price provides lot of upside (51%) post demerger.
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He was somewhat sober - compared PPL valuation with Divis & priced at P/S multiple accordingly but didnāt do the same with the PEL - compare it to Bajaj Finās 12X BV & u hv super undervaluation here 
Anyhow as per the BV mentioned for different businesses; here is a reasonable valuation as per my understanding :-
Book Value : -
PCHFL(Post DHFL De-merger) : - 11000 crs.
PEL ( Housing Fin parent co. which includes
Shriram Capital & City Union investments) :- 17000 crs.
Pharma business : - 6800 - 7000 crs.
Additnly Pharma EBITDA this yr expected :- approx. 1500 crs.
Carlyle bought stake valued at :- 21000 crs.
The debt in both businesses is optimal for thr respective industries. So, here is the valuation :-
PCHFL - 1.5 X BV - 16500
PEL - 1 X BV - 17000
Pharma - 12X EBITDA - 18000 less debt 3000 = 15000 & 80% stake of it = 12000
Total : - 45,500 crs.(approx.)
Disclosure :- Invested frm lower levels.
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