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Piramal Capital sells bad loans to Omkara ARC for Rs.625-Cr

Economic Times  

Piramal Capital & Housing Finance has sold a loan outstanding pool of INR 3,656 crore bad loans to Omkara Asset Reconstruction Company (ARC) for INR 625 crore. The sale, finalised last week, marks a recovery of 17% for Piramal. The sum of INR 625 crore will be divided into 15% cash and 85% security receipts, which will be subscribed by Piramal Capital or its affiliates. The pool consists of accounts acquired along with Dewan Housing Finance Limited (DHFL) and Piramal's own loan book. The non-banking finance company had called for bids under a cash-security receipt structure, based on an existing offer. Omkara ARC provided a binding offer, setting the reserve price for the auction. However, no other bidder showed interest, leading to the sale to Omkara.