The Piramal Group has offered Rs 37,250 crore to DHFL’s creditors.
The Piramal Group has offered Rs 37,250 crore to DHFL’s creditors.

Equity shares of Dewan Housing Finance Corporation Ltd will be delisted from the stock exchanges going ahead, as part of the resolution plan of Piramal Capital & Housing Finance Ltd.

On Monday, the Mumbai bench of NCLT had approved the resolution plan of the Piramal Enterprises' subsidiary.

"As part of the Resolution Plan, the equity shares of the Company are proposed to be delisted. Appropriate disclosures in terms of Regulation 3(3) of the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, shall be made following receipt of the copy of the Order by the National Company Law Tribunal approving the Resolution Plan," DHFL said in a regulatory filing.

The approval came after the National Company Law Appellate Tribunal (NCLAT) on May 25 stayed the NCLT order directing DHFL's Committee of Creditors (CoC) to consider the settlement of its former promoter Kapil Wadhawan.

'Pleased with judgment'

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." The approval from NCLT is a significant milestone in DHFL's resolution and an affirmation of the sanctity of the IBC process in India, it said.

Piramal is committed to collaborating with all relevant authorities, regulators, creditors and investors involved in this resolution and looks forward to a speedy culmination of the resolution process, it added.

Piramal Group turned out to the successful bidder for the bankrupt Dewan Housing Finance Corporation Ltd (DHFL) in January, but in a strange turn of events, the Mumbai-bench of NCLT on May 19 asked the lenders of the bankrupt DHFL to consider Wadhawan's settlement offer the settlement offer of former promoter Kapil Wadhawan.

Shares of DHFL hit the 10 percent upper circuit on Tuesday. Around 10 AM, its shares on the BSE were at Rs 22.85, higher by Rs 2.05 or 9.86 percent from its previous close.

Shares of DHFL closed nearly 10 percent higher at Rs 20.80 on the BSE on Monday.

Wadhawan makes settlement offer to CoC

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.

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.

Turning the corner, Dewan Housing Finance Corporation (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.

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