Dewan Housing Finance Ltd's (DHFL) share price surged nearly 10 percent on Tuesday after promoter Kapil Wadhawan made an offer of Rs 43,000 crore to settle all claims against the company. The stock closed 9.75 percent, quoting at Rs 15.20 per share on the NSE.
Wadhawan wrote to RBI-appointed administrator R Subramaniakumar dated October 17 that he would transfer the rights, title and interest in the firm's projects to himself to ensure "maximum value" to stakeholders.
He claimed that the total profit from 10 of DHFL's projects is pegged at an estimated Rs 43,897 crore, and not the suppressed value "outside forces" are trying to project.
Some of these properties include the Juhu Galli project with a revenue potential of Rs 32,000 crore and another project in Irla, with potential revenue of Rs 4,400 crore. Wadhwan has urged Subramaniakumar to conduct an independent valuation of these properties to ascertain their value, said the letter further.
CNBC-TV18 reported earlier that four suitors had submitted bids to acquire DHFL, with US-based distressed asset fund Oaktree Capital offering to acquire the entire portfolio for Rs 28,000 crore, leading to a 30 percent plus recovery for the financial creditors who have made claims of over Rs 87,000 crore against the firm under IBC.
The stock corrected massively in 2018 due to the IL&FS crisis. In a single day, the shares of the company halved from Rs 600 levels to around Rs 270. Since then, it has been on a downtrend with the current price at Rs 15.
First Published: IST