DHFL shares may get delisted post acquisition by Piramal

As part of resolution process under the Insolvency and Bankruptcy Code IBC, lenders led by Union Bank of India in January this year favoured the bid by Piramal Capital and Housing Finance to take over the beleaguered housing finance firm.


PTI | New Delhi | Updated: 07-06-2021 18:32 IST | Created: 07-06-2021 18:11 IST
DHFL shares may get delisted post acquisition by Piramal
The company is undergoing insolvency proceedings Image Credit: ANI
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Debt-ridden mortgage firm DHFL's shares would be delisted from stock exchanges post-acquisition by Piramal Capital and Housing Finance, which has emerged as the successful bidder for the company. As part of the resolution process under the Insolvency and Bankruptcy Code (IBC), lenders led by Union Bank of India in January this year favoured the bid by Piramal Capital and Housing Finance to take over the beleaguered housing finance firm. According to sources, shares of DHFL would be delisted post-acquisition as per the IBC guidelines and Sebi delisting norms. Besides, sources said, the company may merge itself with DHFL for which call would be taken after all legal and regulatory clearances are obtained. The Mumbai bench of the National Company Law Tribunal (NCLT) on Monday gave its conditional approval to the Piramal Group's bid for DHFL. The tribunal, chaired by HP Chaturvedi and Ravikumar Duraisamy, said the approval is subject to the final judgment from the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court's judgment on the plea of erstwhile promoter Kapil Wadhawan. Last year, Wadhawan had made his settlement offer to the Committee of Creditors (CoC). The offer was rejected by the creditors, citing a lack of credibility and the valuations attached to the proposed asset sales. In the plan, Wadhawan had proposed to repay lenders by selling assets. Meanwhile, Piramal in a statement said ''we are pleased with the judgment today by the NCLT for approving our resolution plan for DHFL. This follows the endorsement of 94 percent of lenders, and the subsequent approvals from RBI and CCI, and reiterates the strength and quality of our bid.'' This is one of India's largest IBC proceedings, and the very first in the financial sector. In November 2019, RBI had referred DHFL -- then the third-largest pure-play mortgage lender -- for resolution under the Code. DHFL had gone bankrupt with more than Rs 90,000 crore in debt to various lenders, including banks, mutual funds, and individual investors who kept fixed deposits with the company.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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