Shares of the Mumbai-based troubled shadow lender Dewan Housing Finance Corporation Limited (DHFL) have been locked in a 5 per cent higher circuit at Rs 27.50 on the BSE after its committee of collectors (CoC) permitted a decision plan submitted by Ajay Piramal-led Piramal Capital and Housing Finance. Creditors of DHFL voted in favour of Rs 37,250 crore takeover bid submitted by the Piramal Group for the troubled shadow lender. (Track DHFL share value right here)
DHFL, which was one of many nation’s prime non-banking finance firm prior to now, accrued complete money owed of virtually Rs 1 lakh crore earlier than defaulting on funds to its collectors.
Three entities – Adani Group, Piramal Group and the US-based asset administration firm Oaktree Capital Management – had been invited to bid for DHFL’s total mortgage e-book.
For Piramal, taking on rival Dewan would assist the conglomerate double down on its actual estate-focused shadow banking enterprise. The improvement additionally brings some decision to a key case within the nation’s insolvency system, the place excessive profile circumstances have at occasions lingered on for years. Dewan was put into an insolvency course of after it was seized by the central financial institution in a shock transfer in late 2019.
The non-bank financing business went right into a disaster in 2018 when financier IL&FS Group all of a sudden stumbled, and the pandemic added to strains. Policy makers have stepped in with help, channeling liquidity to the sector final 12 months.
As of 11:45 am, there have been over 6.5 lakh pending purchase orders for DHFL shares on the BSE.