Shares of Dewan Housing Finance Corporation Ltd (DHFL) stopped trading on the stock exchanges from today, as BSE and NSE informed investors more than the weekend. In separate notifications, each the exchanges mentioned that DHFL’s resolution strategy delivers for the delisting of equity shares of the Company. DHFL ended Friday’s trading session at Rs 16.70 apiece, immediately after possessing hit the 10% reduce circuit. The stock has seen important trading in the last handful of weeks, even hitting upper circuits immediately after the resolution strategy was authorized by the National Company Law Tribunal.
“Dewan Housing Finance Corporation Limited vide its announcement dated June 08, 2021 informed the Exchange regarding approval of the resolution plan by the Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench which provides for delisting of equity shares of the Company,” the NSE notification on the delisting of DHFL shares study. BSE and NSE mentioned that on June 9, DHFL stated that no worth was attributable to the equity shares as per the liquidation worth of the Company estimated by registered valuers appointed below the Insolvency and Bankruptcy Board of India.
Earlier last week, the enterprise informed the bourses that NCLT had authorized Piramal Capital & Housing Finance’s insolvency resolution strategy with particular situations. NCLT has also appointed a seven-member monitoring committee for management and handle of DHFL, till the new owner Piramal Capital’s resolution strategy is implemented. According to the NCLT order, released more than the weekend, current shareholders of the enterprise will have to stroll away empty-handed. The order states that the interests of current shareholders have been altered by the resolution strategy with the worth of 31,38,23,02 equity shares turning to zero. The market place capitalization of DHFL was at Rs 524 crore on Friday’s closing bell.
Shares of DHFL saw heavy activity throughout the preceding week with 44 lakh shares exchanging hands on the BSE on Tuesday and a whopping 1.46 crore on the NSE. During the latter half of the week, the stock continued to plummet.
Piramal Capital & Housing Finance will shell out Rs 37,250-crore for DHFL, according to the resolution strategy. This will translate to 40% recovery for economic creditors on the total claim of Rs 87,082 crore. State Bank of India is a lead creditor to DHFL with admitted claims of Rs 7,170 crore. DHFL had gone bankrupt with more than Rs 90,000 crore in debt to many lenders, such as banks, mutual funds and person investors who kept fixed deposits with the enterprise.