The creditors of Dewan Housing Finance Corporation Ltd (DHFL) have approved the resolution plan submitted by Piramal Capital and Housing Finance Limited. The 18th committee of creditors (CoC) took this decision after holding a meeting on January 15 (Friday).
According to a regulatory filing released on Sunday, DHFL has said that the company has approved the resolution plan submitted by Piramal Capital and Housing Finance Limited (under Option I in terms of the RFRP dated September 16, 2020) by CoC by majority voting under section 30(4) of the Insolvency and Bankruptcy Code read with Reg. 39(3) of CIRP Regulations, as the successful resolution plan.
As per the reports, Piramal's bid received 94 percent votes, while the competing bidder Oaktree Capital received only 45 percent of the votes.
On Monday, January 18,the shares of DHFL were trading in green at Rs 27.55, up by 1.30 points or 4.95 percent at 9:58 am on the National Stock Exchange. While on the Bombay Stock Exchange it was at Rs 27.50 up by 1.30 points or 4.96 percent.
On the other hand, shares of Piramal Enterprises saw a decline of 41.45 points or 2.55 percent and was trading at Rs 1,583.00 on the BSE. While on the NSE, it was at Rs 1,583.50, down by 41.65 points or 2.56 percent.
The Reserve Bank of India (RBI) in November 2019 referred DHFL for insolvency proceedings to the National Company Law Tribunal (NCLT).
RBI used special powers under Section 227 of the Insolvency and Bankruptcy Code (IBC) to refer the third-largest pure-play mortgage lender to NCLT making it the first finance company to be referred to the NCLT using special powers.
DHFL in its annual report has said that it had total assets amounting to Rs 79,800 crore as of March 2020. However, out of these Rs 50,227 crore or 63 per cent of the total portfolio was reported as gross NPAs.
Lenders of DHFL include the State Bank of India, Bank of India, Canara Bank, Union Bank, HDFC Bank, etc.