Bad loans worth Rs4,451 crore sold at a discount for Rs545 crore by Piramal Capital, according to ET report

3 Aug 2022 , 12:29 PM

At a significant discount, two people with knowledge of the situation told ET, that Piramal Capital and Housing gave VSJ Investments troubled mortgage portfolios totaling Rs4,451 crore.

The financial services company sold its troubled portfolio in two tranches: Rs2,748 crore for Rs275 crore, which is equivalent to a rupee restoration of 10 paise, and Rs1,467 crore for Rs270 crore, which is equivalent to a rupee restoration of 18 paise.

Both tranches were made available for upfront cash funds during the first quarter of the current year.

According to the ET report, VSJ Investments purchased each of the portfolios at an uncontested Swiss problem public sale. The VSJ Investments offer might be the anchor offer in a Swiss public auction and it could have first priority to match any counterbid that Piramal would have received.

Loans from DHFL, the home finance company it acquired last year during an insolvency process, made up the majority of the portfolio. Piramal Capital did not respond to ET’s inquiries for comment. ET could not contact VSJ Investments for comment.