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- DHFL Share Price; BSE NSE Exchanges Suspended Trading Of Dewan Housing Finance Meta Keywords: DHFL
Mumbai9 minutes ago
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- Till a week ago, investors invested heavily in its shares.
The shares of Dewan Housing Finance Limited (DHFL) finally closed trading. Its stock closed at Rs 16.70, down 9.97% on Friday. Its market cap was Rs 524 crore. However, before that its stock had fallen by 20-20% for two days.
Banks had written off the loan of this company up to Rs 45,000 crore. Write-off means that the loan will continue to be recovered, but there is no guarantee.
Traded in 1.46 crore shares on June 8
On June 8, 1.46 crore shares of this company were traded. But now its shares can neither be bought nor sold. Investors invested in the shares of this company in expectation. The National Stock Exchange and the Bombay Stock Exchange had issued a notice last week informing that trading in this stock would be closed from Monday. However, knowing this, till a week ago, investors invested heavily in its shares and its stock had reached the high level of 1 year.
Piramal Group had bid
In the successful bid of Piramal Group for DHFL, the scheme approved by the NCLT talked of zero price for the shares of DHFL, yet it was allowed to trade in the stock. The BSE and NSE circular said that DHFL on June 9 said that for equity shares as per the estimated liquid value of the company by registered valuers appointed under the India Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporates) There was no value.
Plan order is yet to come
Further, the company has also stated that the written order for approval of the resolution plan is yet to come and all the disclosures are still attached to this written order. The Piramal Group had made an offer of Rs 37,250 crore to buy the entire business of DHFL. This also includes upfront cash of Rs 12,700 crore. The Committee of Creditors (CoC), Reserve Bank of India (RBI) and Competition Commission of India (CCI) have also approved the offer of Piramal Group.
More funds should be allocated for FD holders
NCLT has asked the committee of creditors to allocate more funds for fixed deposit (FD) holders and small investors of DHFL. However, the tribunal has left the final decision on the CoC. The NCLT has dismissed the plea seeking to provide copy of the resolution plan to former DHFL promoter Kapil Wadhawan.
The matter is pending in the Supreme Court
Last month, the NCLT had asked the CoC to consider the settlement offer of former DHFL promoter Kapil Wadhawan. Against this, the CoC had filed a petition in the NCLAT. On this NCLAT had stayed the order of NCLT. Kapil Wadhawan has approached the Supreme Court to stay the decision of NCLAT. No decision has been taken in this matter yet and the matter is under consideration.
In November 2019, the Reserve Bank of India (RBI) applied to declare DHFL as insolvent under the Insolvency and Bankruptcy (IBC) code. The insolvency process of DHFL is going on in the Mumbai Bench of the National Company Law Tribunal (NCLT).