DHFL shares stop trading on NSE, BSE; existing stock worth zero now

Earlier final week, the corporate knowledgeable the bourses that NCLT had authorised Piramal Capital & Housing Finance’s insolvency decision plan with sure circumstances.

Shares of Dewan Housing Finance Corporation Ltd (DHFL) stopped buying and selling on the inventory exchanges from immediately, as BSE and NSE knowledgeable buyers over the weekend. In separate notifications, each the exchanges mentioned that DHFL’s decision plan gives for the delisting of fairness shares of the Firm. DHFL ended Friday’s buying and selling session at Rs 16.70 apiece, after having hit the ten% decrease circuit. The inventory has seen vital buying and selling in the previous few weeks, even hitting higher circuits after the decision plan was authorised by the Nationwide Firm Legislation Tribunal.

“Dewan Housing Finance Company Restricted vide its announcement dated June 08, 2021 knowledgeable the Alternate relating to approval of the decision plan by the Hon’ble Nationwide Firm Legislation Tribunal (NCLT), Mumbai Bench which gives for delisting of fairness shares of the Firm,” the NSE notification on the delisting of DHFL shares learn. BSE and NSE mentioned that on June 9, DHFL said that no worth was attributable to the fairness shares as per the liquidation worth of the Firm estimated by registered valuers appointed below the Insolvency and Chapter Board of India. 

Earlier final week, the corporate knowledgeable the bourses that NCLT had authorised Piramal Capital & Housing Finance’s insolvency decision plan with sure circumstances. NCLT has additionally appointed a seven-member monitoring committee for administration and management of DHFL, till the brand new proprietor Piramal Capital’s decision plan is carried out. In keeping with the NCLT order, launched over the weekend, present shareholders of the corporate should stroll away empty-handed. The order states that the pursuits of present shareholders have been altered by the decision plan with the worth of 31,38,23,02 fairness shares turning to zero. The market capitalization of DHFL was at Rs 524 crore on Friday’s closing bell.

Shares of DHFL noticed heavy exercise through the earlier week with 44 lakh shares exchanging fingers on the BSE on Tuesday and a whopping 1.46 crore on the NSE. Through the latter half of the week, the inventory continued to plummet.

Piramal Capital & Housing Finance will shell out Rs 37,250-crore for DHFL, based on the decision plan. This can translate to 40% restoration for monetary collectors on the whole declare of Rs 87,082 crore. State Bank of India is a lead creditor to DHFL with admitted claims of Rs 7,170 crore. DHFL had gone bankrupt with greater than Rs 90,000 crore in debt to varied lenders, together with banks, mutual funds and particular person buyers who saved fastened deposits with the corporate.