You are here: Home » Markets » News
Business Standard

DHFL gains 20% on heavy volumes, rebounds 25% from day's low on NSE

DHFL said the company is in the process of submitting a resolution plan to the lenders and the lenders are expected to give an in-principle approval to the plan by end of July 2019.

SI Reporter  |  Mumbai 

DHFL

Shares of Dewan Housing Finance Corporation (DHFL) surged 20 per cent to Rs 63 in Tuesday's intra-day trade on the National Stock Exchange (NSE) on heavy volumes. The up move comes amid expectation of an in-principle approval from lenders to the company's resolution plan by month-end. The stock bounced back 25 per cent from its early morning low of Rs 50.50 on the NSE.

“The Company is in the process of submitting a resolution plan to the lenders and the lenders are expected to give an in-principle approval to the plan by end of July 2019,” said on Monday after market hours in a regulatory filing while releasing its audited results.

The ability of the Company to continue as a going concern is predicated upon its ability to monetize its assets, secure funding from the bankers / investors, restructure its liabilities and recommence its operations, it said.

The board has constituted a Committee of the Board of Directors and delegated such committee all the authority and the powers to formulate, consider, finalise and approve the resolution plan inter alia involving restructuring of the debt availed by the company. READ THE BOARD MEETING RELEASE HERE

said it is taking active steps to monetize its assets and is in discussions with multiple Indian banks and international financial institutions to sell off its retail as well as wholesale portfolio. It is in discussions with the consortium of bankers / lenders to restructure its borrowings and will take all the necessary steps to ensure that it meets its financial commitments. There have been discussions for stake sale by the promoters to a strategic partner with further equity infusion.

The Wadhawan family, the promoters of DHFL, currently holds 39.21 percent stake in the company. Private equity firms Lone Star, AION Capital and KKR are in talks with promoters for a strategic stake, PTI reported quoting sources.

At 11:50 am, was trading 13 per cent higher at Rs 59.60 on the BSE, as compared to a 0.03 per cent rise in the Nifty 50 index. A combined 63 million shares, representing 20 per cent of the company's total equity, have changed hands on the NSE and BSE so far.

First Published: Tue, July 23 2019. 11:56 IST
RECOMMENDED FOR YOU