DHFL hits 10% upper circuit on report of Adani, Piramal submitting bids

Shares of Dewan Housing Finance Corporation (DHFL) were locked in 10 per cent upper circuit at Rs 13.87 on the BSE on Monday on reports that Adani and Piramal were among four bids for the troubled non-banking finance company (NBFC).

Till 09:59 am, a combined 780,000 shares had changed hands and there were pending buy orders for 2.3 million shares on the NSE and BSE.

“The Administrator of the Company has received four (4) resolution plans with respect to the options given to the Prospective Resolution Applicants (PRAs) as per the Invitation for Expression of Interest for Submission of Resolution Plan for DHFL dated 28th January 2020,” the company said in a exchange filing on Sunday, October 18, 2020.

According to  report, four entities — Adani Group, Piramal Group, US-based asset management company Oaktree Capital Mangement, and SC Lowy — have submitted bids for DHFL. While Oaktree submitted a bid for the entire company, others bid for select portfolios.

While Adani Group has submitted bids only for the construction finance portfolio and slum rehabilitation loans, Piramal Group has bid for the retail portfolio, and SC Lowy for the construction finance business, putting it in competition with Adani Group. CLICK HERE TO READ FULL REPORT

In the past year, the stock has slipped 35 per cent, as compared to 3 per cent rise in the S&P BSE Sensex. In the past three years, the company's share price has eroded 98 per cent, against 25 per cent rally in the benchmark index.

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