Dewan Housing Finance Corporation (DHFL) on Tuesday said that the company’s equity shares will be delisted from the stock exchanges post acquisition by Piramal Capital and Housing Finance. “As part of the Resolution Plan, the equity shares of the Company are proposed to be delisted,” DHFL said in an exchange filing. The company also notified about the approval of resolution plan by the National Company Law Tribunal.
The Mumbai-bench of the National Company Law Tribunal (NCLT) on Monday gave its conditional approval to Piramal Group’s bid for DHFL. The resolution plan had already received approvals from the RBI in February and Competition Commission of India (CCI) in April 2021. The tribunal, chaired by H P Chaturvedi and Ravikumar Duraisamy, said the approval is subject to the final judgement from the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court’s judgement 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 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 per cent of lenders, and the subsequent approvals from RBI and CCI, and reiterates the strength and quality of our bid.”
In November 2019, RBI had referred DHFL — then the third-largest pure-play mortgage lender — for resolution under the Code. It was the first finance company to be referred to NCLT by the RBI using special powers under Section 227 of the IBC. 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.
DHFL on Sunday reported a consolidated net profit of Rs 96.75 crore for the last quarter of fiscal ended in March 2021. The company had posted a net loss of Rs 7,507.01 crore in the January-March quarter of the year-ago fiscal. It had reported a loss of Rs 13,095.38 crore in the December quarter of 2020-21. For the full year 2020-21, the non-banking finance company posted a net loss of Rs 15,051.17 crore, which widened from Rs 13,455.81 crore in 2019-20.
(With inputs from PTI)
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