Dewan Housing Finance Corporation (DHFL) on Tuesday said that its equity shares will be delisted from the exchanges after the acquisition by Piramal Group as a part of the resolution plan cleared Monday. The company also notified the approval of the resolution plan by the court.
"As part of the Resolution Plan, the equity shares of the Company are proposed to be delisted," the company said in an exchange filing.
CNBC-TV18 had earlier reported that the Mumbai bench of the National Company Law Tribunal (NCLT) cleared Piramal Group's resolution plan with certain conditions. The bench had also rejected Kapil Wadhawan's plea to get access to a copy of the resolution plan.
The NCLT ruling will also be subjected to final orders from the Supreme Court and the National Company Law Appellate Tribunal (NCLAT), which have DHFL’s former promoter Kapil Wadhawan plea pending still.
However, the resolution plan has already received approvals from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
Piramal's wholly-owned subsidiary, Piramal Capital and Housing Finance (PCHFL) has proposed to acquire DHFL for Rs 37,250 crore. The resolution plan includes delisting DHFL, writing off the equity, merging businesses into PCHFL, CNBC-TV18 had reported earlier.
Sources also told CNBC-TV18 that Piramal Group may consider selling off DHFL’s wholesale book after the acquisition, as it is primarily interested only in DHFL’s retail assets.
Piramal Group's offer includes an upfront cash payment of Rs 12,700 crore to the creditors. The Group has also offered to pay Rs 3,000 crore of cash to lenders from interest earned on the existing cash on DHFL's books, and another Rs 1,000 crore for insurance stake, and Rs 1,000 crore additional cash for interest income.
This takes the total cash for the creditors at Rs 17,700 crore. The remaining Rs 19,550 crore is in the form of instruments payable over 10 years.
At the time of writing, the shares of the company were trading 2 percent higher at Rs 22.85.
(Edited by: By Yashi Gupta)
First Published: IST