In his speech on the 74th Annual General Meeting of the Company, Piramal said that although the second COVID wave has impacted the recovery cycle that India was witnessing in the second half of FY21, the economic impact is nowhere close to what we saw during the peak of the 1st wave as our country was better prepared this time than a year ago:
- Businesses had learnt to adapt to physical restrictions.
- Government was judiciously imposing localised lockdowns to minimise disruptions.
- RBI and financial markets were better prepared to manage liquidity challenges. The recent RBI relief measures for small borrowers and MSMEs were proactive.
- We are seeing a rapid pace of vaccination. Over 32 crore doses have been administered. Indians receiving their first shot increased by 133% in June’21 compared to May’21.
- Higher spending on health infrastructure including the National Digital Health Mission will improve healthcare services to the masses significantly.
He added, "Post the completion of DHFL acquisition, we will be better positioned to finalise and announce the demerging plan for the two large listed entities in Financial Services and Pharma sectors."
The company had bid for DHFL through IBC route for a total consideration of Rs34,250cr. He said, "I am pleased to inform that our resolution plan for DHFL received an overwhelming vote of confidence by the COC, reflecting the Group's credibility and balance sheet strength."
"This acquisition brings together two large HFC entities, creating one of the largest NBFCs of India," Piramal added.
Further, Piramal said, "With this acquisition, we would have access to a vast network of 250+ branches with a majority of them in tier 2 and tier 3 cities and a sizable customer base of ~1 million."
Lastly, Piramal said, "I am confident that both businesses will emerge as two strong companies, with a good runway for growth in the long term."
On Sensex, Piramal Enterprises closed at Rs2200.10 per piece down by 4.3%.