Investors getting shares of Dewan Housing Finance Ltd (DHFL) could be latching onto a pipe dream which may perhaps in no way fructify. The quickly-to-be delisted corporation was in higher demand on the stock exchanges on Tuesday, with 44 lakh shares exchanging hand on the BSE and a whopping 1.46 crore on the NSE. Today the stock hit the decrease circuit to trade at Rs 20.60 apiece. However, The sharp drop in the shares of the quickly-to-be delisted corporation comes soon after the stock soared 31% in the initially 8 days of this month.
The heavy trading and delivery volumes in DHFL stock yesterday showed that investors have been nonetheless getting the stock, some of them hoping to extract some worth when the stock re-lists. However, this may perhaps be far from the truth with no future promises of re-listing made to shareholders. The worth of DHFL shares with current shareholders has basically turned to trash, Vishal Wagh, Head of Research, Bonanza Portfolio, told TheSpuzz Online. “The wise move for investors is to sell their current holdings and invest in more lucrative options,” he added. Vishal Wagh additional added that the relisting of DHFL shares remains a distant dream which may perhaps or may perhaps not be accomplished.
“There is uncertainty about the future prospects of DHFL. Investors should take money out before delisting and look for opportunities where there is a certainty,” Vishal Wagh added. India’s biggest stockbroker, Zerodha has introduced a nudge feature on its platform that informs investors of the possibility of invested worth becoming extinguished as portion of the acquisition of the corporation.
On Monday, DHFL mentioned in an exchange filing that Mumbai bench of the National Company Law Tribunal (NCLT) authorized Piramal Capital & Housing Finance’s insolvency resolution strategy with specific situations. “As part of the Resolution Plan, the equity shares of the company are proposed to be delisted,” the corporation mentioned in the BSE filing. Piramal Capital & Housing Finance will shell out Rs 37,250-crore for DHFL. This will translate to 40% recovery for monetary 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 a variety of lenders, like banks, mutual funds and person investors who kept fixed deposits with the corporation.