Shares of scam-hit Dewan Housing Finance Corporation Ltd (DHFL) tanked about 9.85 per cent on Wednesday as Piramal Capital & Housing Finance Ltd’s (PCHFL) Resolution Plan for the company envisages extinguishing all the equity shares held by existing shareholders of DHFL without payment of any price to them.

DHFL shares sank 9.85 per cent to close at ₹20.60 on the BSE against Tuesday’s close of ₹22.85. On Tuesday, the company’s shares jumped 9.86 per cent over the previous close ₹20.80. The company, in its regulatory filing on Wednesday, said the Mumbai bench of the National Company Law Tribunal (NCLT) had, on June 7, approved PCHFL’s Resolution Plan, as approved by the Committee of Creditors for the corporate insolvency resolution of DHFL under Section 31 of the Insolvency & Bankruptcy Code (IBC) 2016, with certain conditions (including such directions as may be passed by the National Company Law Appellate Tribunal).

PCHFL is a wholly-owned subsidiary of Piramal Enterprises Ltd (PEL).

“As part of the Resolution Plan, the equity shares of the Company are proposed to be delisted in compliance with the Securities and Exchange Board of India (Delisting Of Equity Shares) Regulations, 2009,” it said.

Accordingly, the Resolution Plan proposes to extinguish all the equity shares (including any right to subscribe to, or be allocated such equity shares, including any employee stock options, pre-emptive subscription rights or convertible instruments held by any person) held by the existing shareholders of the company or any other person by way of a capital reduction without payment of any price to the shareholders/ such person, it added.

As per PEL’s analyst presentation, the total consideration for acquiring DHFL is ₹34,250 crore. This comprises of ₹14,700 crore upfront cash component (including cash on DHFL’s balance sheet) and ₹19,550 crore deferred component (10-year non-convertible debentures at 6.75 per cent interest).

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