DHFL shares suspended for trading by BSE and NSE

DHFL shares suspended for trading

DHFL shares will be suspended for trading with effect from June 14th, read circulars from BSE and NSE.

Dewan Housing Finance Corporation Limited vide its announcement dated June 08, 2021 informed the Exchange regarding approval of the resolution plan by National Company Law Tribunal (NCLT), Mumbai Bench which provides for delisting of equity shares of the Company. Further, the Company vide announcement dated June 9, 2021 stated that no value was attributable to the equity shares as per the liquidation value of the Company estimated by registered valuers appointed under the Insolvency and Bankruptcy Board of India. Further, Company has also mentioned that the written order of the NCLT approving the Resolution Plan is still awaited and all disclosures made remain subject to such orders,” stated both the exchanges in their respective circulars.

The DHFL share had hit consecutive lower circuits on Thursday and Friday. The share closed at ₹16.70 on NSE on Friday.

On Tuesday, Piramal Group was allowed by National Company Law Tribunal (NCLT) to take over DHFL. This was allowed under the bankruptcy code for ₹37,500 crore against a claim of ₹85,000 crores.

DHFL Timeline of events

On May 25th DHFL has asked the committee of creditors to consider the Wadhawans offer of paying back almost ₹93,000 crore to the lenders and creditors. This was stayed by the NCLAT after the Pirmal group challenged it. On Monday the bench cleared the Pirmal bid saying that they respected the commercial wisdom of the lenders. Also the DHFL promoters’ bid to pay back more than 100% of the claims was also rejected.

In November 2019, DHFL became the first NBFC to be referred for bankruptcy by the RBI.

Equity shares of Dewan Housing Finance Corporation Ltd will be delisted from the stock exchanges. This is part of the resolution plan of Piramal Capital & Housing Finance Ltd.

As part of the Resolution Plan, the equity shares of the Company are proposed to be delisted. Appropriate disclosures in terms of Regulation 3(3) of the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, shall be made following receipt of the copy of the Order by the National Company Law Tribunal approving the Resolution Plan,” DHFL said in a regulatory filing.

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