A group of investors of the Dewan Housing Finance Corporation Limited (DHFL) plan to approach the Supreme Court to challenge the National Company Law Tribunal (NCLT) order to allow delisting of the company’s shares from the stock exchanges.
The DHFL investors said that the NCLT and the Securities and Exchange Board of India (SEBI) failed to adequately inform them about the impending delisting, according to a report in Livemint. The petition is yet to be formalised.
The delisting of DHFL stocks is part of the Piramal Group’s resolution plan for the company under the Insolvency and Bankruptcy Code. This plan was cleared by the NCLT on June 7.
Earlier this month, the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) had announced that DHFL will be suspended from trading from June 14.
"DHFL vide its announcement dated June 08, 2021, informed the Exchange regarding approval of the resolution plan by NCLT, Mumbai Bench which provides for delisting of equity shares of the company. Further, the company vide announcement dated June 9, 2021, stated that no value was attributable to the equity shares as per the liquidation value of the company estimated by registered valuers appointed under the Insolvency and Bankruptcy Board of India. Further, the company has also mentioned that the written order of the NCLT approving the resolution plan is still awaited and all disclosures made remain subject to such orders," stated both the exchanges in their respective circulars.
Before this, the Mumbai bench of the NCLT had allowed Piramal Group to take over DHFL under the bankruptcy code for Rs 37,500 crore against a claim of close to Rs 85,000 crore. In November 2019, the DHFL had become the first Non-Banking Financial Company (NBFC) to be referred for bankruptcy by the Reserve Bank of India (RBI).
On June 15, the RBI had restricted DHFL from taking deposits under Piramal management after reclassifying it as a non-deposit-taking housing finance company.