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BSE, NSE suspend trading of DHFL shares from June 14: Know why

Company is awaiting the written order of the NCLT approving the Resolution Plan, says the stock exchange


BS Web Team & Agencies 

The development comes at a time when the DHFL scrip has hit consecutive lower circuits on Thursday and Friday

The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) informed that will be suspended from trading with effect from June 14, that is closing hours of trading on June 11, 2021.

"Dewan Housing Finance Corporation Limited vide its announcement dated June 08, 2021 informed the Exchange regarding approval of the resolution plan by National Company Law Tribunal (NCLT), Mumbai Bench which provides for delisting of equity shares of the Company. Further, the Company vide announcement dated June 9, 2021 stated that no value was attributable to the equity shares as per the liquidation value of the Company estimated by registered valuers appointed under the Insolvency and Bankruptcy Board of India. Further, Company has also mentioned that the written order of the NCLT approving the Resolution Plan is still awaited and all disclosures made remain subject to such orders," stated both the exchanges in their respective circulars.

The development comes at a time when the scrip has hit consecutive lower circuits on Thursday and Friday. scrip on closed 10% lower on Friday at Rs 16.70.

On Tuesday, making an about-turn, the Mumbai bench of the National Company Law Tribunal (NCLT) chaired by HP Chaturvedi and Ravikumar Duraisamy, allowed Piramal Group to take over DHFL under the bankruptcy code for as low as Rs 37,500 crore against a claim of close to Rs 85,000 crore.

It had on May 25 asked the committee of creditors to consider the Wadhawans offer of paying back almost Rs 93,000 crore to the lenders and creditors, which was stayed by the NCLAT after the Pirmal group challenged it. But on Monday the bench cleared the Pirmal bid saying they respected the commercial wisdom of the lenders and thus also rejected the former DHFL promoters' offer to pay back more than 100 per cent of the claims.

In November 2019, DHFL became the first NBFC to be referred for bankruptcy by the RBI.

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.

"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.

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First Published: Sat, June 12 2021. 21:37 IST