Shares of Piramal Enterprises zoomed 8 per cent to Rs 2,124 on the BSE in intra-day trade on Tuesday, thus surging 15 per cent in two days after the Mumbai Bench of the National Company Law Tribunal (NCLT) approved Piramal Group’s resolution plan for the beleaguered Dewan Housing Finance Ltd (DHFL).
DHFL's stock was locked in upper circuit for the second straight day, up 10 per cent at Rs 22.85 on the BSE with only buyers seen on the counter. The trading volumes jumped over five-fold with a combined 17.9 million shares changing hands on the NSE and BSE. There were pending buy orders for 2.4 million shares on both the exchanges, data shows.
On January 22, 2021, Piramal Capital & Housing Finance Limited (‘PCHFL’), wholly owned subsidiary of the Piramal Enterprises, had been declared as the successful resolution applicant in relation to the Corporate Insolvency Resolution Process (‘CIRP’) of DHFL under the Insolvency & Bankruptcy Code, 2016 and identified the resolution plan submitted by PCHFL, as the successful resolution plan by the administrator of DHFL.
“Hon’ble National Company Law Tribunal, Mumbai Bench (‘NCLT’), has today accorded its approval to the resolution plan of PCHFL in relation to the CIRP of DHFL. The certified copy of the order of the NCLT is awaited,” Piramal Enterprises said in exchange filing on Monday.
DHFL said that as part of the Resolution Plan, DHFL's equity shares are proposed to be delisted. Appropriate disclosures shall be made following receipt of the copy of the Order by the National Company Law Tribunal approving the Resolution Plan, the company said.
The plan put forward by Piramal Group, which has offered to pay Rs 37,250 crore, has been approved by the committee of creditors (CoC), the Reserve Bank of India (RBI), and the Competition Commission of India (CCI).
While the bankruptcy tribunal has approved the overall plan, it has asked for reallocating funds to fixed-deposit holders and small investors. That said, it has not sent the plan back to the CoC; rather, it has said the final decision is left to the lenders, Business Standard reported. CLICK HERE FOR FULL REPORT
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU