Some thoughts and queries on the Piramal-DHFL deal:
Piramal had issued ten-year bonds to the tune of Rs 19,500 crore with a coupon of 6.75 per cent to the lenders of DHFL in 2021.
These bonds are being redeemed at the rate of 2.5 per cent every six months and the face value of the bond is now Rs 925 each (Rs 75 having been paid out over the last 18 months.) If I am not mistaken PEL should have paid around Rs 1316 crores by way of bi-annual interest on the bonds in the first year, tapering down to around Rs 1100 cr in Sept-2023. The company would also be shelling out Rs 1950 cr at the end of the first two years by way of redemption of principal.
Won’t such huge payouts stretch PEL’s P&L account? Also has the DHFL acquisition begun paying for itself.
The bonds themselves are available in the market at a yield of 10.83 per cent.
dis: holding PEL. took a small SIP of the bonds today.
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