Business

DHFL shares jump 5% on report Adani Group interested in buying the company

Updated : November 22, 2019 10:24 AM IST

DHFL shares opened at an upper price band of Rs 22.20 per share on the NSE.

The debt-ridden mortgage firm on October 18 reported a consolidated net loss of Rs 242.48 crore for the second quarter of the current fiscal.

DHFL is set to become the first NBFC to be referred to the NCLT under new rules notified by the government.

Shares of Dewan Housing Finance Corporation Ltd (DHFL) were locked in 5 percent upper circuit in trade on Friday. The stock gained on reports that the Gautam Adani-led Group could be a strong contender to take over the crisis-hit non-banking finance company.

DHFL shares opened at an upper price band of Rs 22.20 per share on the NSE. The stock had closed at Rs 21.15 on Thursday.

So far this year, the NBFC's shares have dropped over 91 percent, while the 10-year return on the stock is negative by over 75 percent. In the last two days, the stock has gained over 10 percent.

Banking sources CNBC-TV18 spoke to have confirmed that the Adani Group had shown interest even a few months ago in both the wholesale and the retail businesses.

Further, the Piramal Group and Apollo are also said to be in the fray to take over the troubled company, after the Reserve Bank of India (RBI) on Wednesday said that it would initiate insolvency proceedings for the resolution of the company.

However, the Piramal and Apollo groups have only shown interest in the retail piece, according to sources in the know.

ALSO READ | If DHFL heads to IBC – What are the odds of a successful resolution?

The RBI superseded the Board of Directors of DHFL owing to governance concerns and defaults by DHFL in meeting various payment obligations.

The central bank also appointed R. Subramaniakumar, ex-MD and CEO of Indian Overseas Bank, as the administrator of DHFL under Section 45-IE (2) of the Reserve Bank of India Act, 1934.

With the RBI's decision, DHFL is set to become the first non-banking financial company (NBFC) to be referred to the National Company Law Tribunal (NCLT) under new rules notified by the government.

ALSO READ | Adani Group emerges the frontrunner for DHFL

The debt-ridden mortgage firm on October 18 reported a consolidated net loss of Rs 242.48 crore for the second quarter of the current fiscal. The company had posted a net profit of Rs 431.71 crore in the corresponding July-September period of 2018-19.

DHFL said the losses registered in Q2 of this fiscal were fully attributable to owners of the parent (company).

Total income of the company fell to Rs 2,399.84 crore during the three months to September, as against Rs 3,154.25 crore in the year-ago period, it said in a regulatory filing.

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