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
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