Shares of the Mumbai-based troubled shadow lender Dewan Housing Finance Company Restricted (DHFL) have been locked in a 5 per cent higher circuit at Rs 27.50 on the BSE after its committee of collectors (CoC) accepted a decision plan submitted by Ajay Piramal-led Piramal Capital and Housing Finance. Collectors 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 price here)
DHFL, which was one of many nation’s high non-banking finance firm previously, accrued whole money owed of just about 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 Administration – had been invited to bid for DHFL’s complete mortgage e-book.
For Piramal, taking up rival Dewan would assist the conglomerate double down on its actual estate-focused shadow banking enterprise. The event additionally brings some decision to a key case within the nation’s insolvency system, the place excessive profile instances have at instances 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 trade went right into a disaster in 2018 when financier IL&FS Group instantly stumbled, and the pandemic added to strains. Coverage makers have stepped in with help, channeling liquidity to the sector final yr.
As of 11:45 am, there have been over 6.5 lakh pending purchase orders for DHFL shares on the BSE.