DHFL: Possible merger, delisting – what next? A look at the latest developments amid growing speculation

DHFL Possible merger, delisting - what next A look at the latest developments amid growing speculation
DHFL Possible merger, delisting - what next A look at the latest developments amid growing speculation

Will Capital and Housing Finance merge itself with Dewan Housing Finance Ltd (DHFL)? there’s speculation within the market that a merger can be doubtless once the desired regulative nods are obtained, sources same.

Yesterday, Piramal Capital and Housing Finance emerged because of the winning bidder for troubled, debt-ridden housing nondepository financial institutions. In January this year, the Union Bank-led cluster of lenders had cleared Piramal’s bid for DHFL beneath IBC resolutions.

The financial organization too cleared the Rs 34,250 Crore acquisition of DHFL by the Piramal cluster.

The resolution arrange for DHFL was approved by the tally in Feb, and by the Competition Commission of Asian country (CCI) in April. Piramal’s supply got 94% votes of the creditors. Rival bidders Oaktree and Adani Capital obtained 45 and 18, severally.

The nod for the takeover is conditional as of currently. the ultimate call can come back once the NCLAT and also the SC delivers final judgments on former promoter Kapil Wadhawan’s plea.

A week ago, Wadhawan additionally challenged in SC a keep order by the proceedings assembly, that put aside city NCLT’s order on contemporary thought of his supply to possess the corporate.

Wadhawan had created a settlement supply — that he can repay lenders by merchandising assets — to the Committee of Creditors in 2020, solely to be rejected on the bottom of lack of credibleness and dodgy quality valuations that he had cited.

DHFL story in a very shell

When DHFL went bankrupt, its total debt stood at over Rs 90,000 crore, with loans owed to an entire host of lenders as well as banks, MFs and stuck deposit holders.

The company was sent into resolution beneath IBC by the tally in 2019. At that point, it absolutely was India’s third-biggest pure-play mortgage loaner.

RBI’s call created DHFL the primary nondepository financial institution to be remarked NCLT beneath special powers of Section 227 of the IBC.

The company seemed to flip a corner simply on the eve of the resolution calls, posting a consolidated income of Rs 96.75 Crore this fall. It had reportable an internet loss of Rs 7,507.01 Crore within the like quarter a year agone, and a loss of Rs 13,095.38 Crore in Q3 of 2020-21.

For the complete 2020-21 FY, the NBFC denote an internet loss of Rs 15,051.17 crore, a omit Rs. 13,455.81 crore in 2019-20.

Fresh development

DHFL’s shares would be delisted from stock exchanges once the resolution method winds down, sources same. This delisting is going to be as per India’s economic condition rules and Sebi’s norms.

“Piramal is committed to collaborating with all relevant authorities, regulators, creditors and investors concerned during this resolution and appears forward to a speedy end result of the resolution method,” a press release same.

In Nov 2019, the tally had referred DHFL — then the third-largest pure-play mortgage loaner — for resolution beneath the Code.
DHFL had gone bankrupt with over Rs 90,000 Crore in debt to numerous lenders, as well as banks, mutual funds, and individual investors WHO unbroken fastened deposits with the corporate.

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