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Shareholders to get nothing from delisting of DHFL shares

Dewan Housing Finance Corporation

Shareholders to get nothing from delisting of DHFL shares

Mumbai Even as the shares of scam-struck Dewan Housing Finance Corporation Ltd (DHFL) get delisted from both stock exchanges, BSE and NSE, on Monday (June 14), the shareholders are likely to get nothing out of it.

DHFL's shares tanked 9.97 per cent on Friday to close at Rs 16.70 apiece, from the previous close of Rs 18.55. The 52-week high and low of the share was Rs 43 and Rs 12.01, respectively.

"While there is RBI to protect the interest of depositors of bank, what is SEBI doing to ensure that the retail shareholders' interest was protected in the case of DHFL," an expert told Bizz Buzz, requesting anonymity.

"As part of the Resolution Plan, the equity shares of the Company are proposed to be delisted. Appropriate disclosures in terms of Regulation 3(3) of the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, shall be made following receipt of the copy of the Order by the National Company Law Tribunal approving the Resolution Plan," DHFL had said in a regulatory filing earlier.

In its circular to members, NSE informed that DHFL equity shares will be suspended from trading with effect from June 14, that is closing hours of June 11. In a similar fashion, BSE also, said in a notice advised its members to avoid market complications as the trading in the equity shares of DHFL will be suspended with effect from June 14.

Both the exchanges said that DHFL, vide its announcement dated June 8, had informed them regarding approval of the resolution plan by the National Company Law Tribunal (NCLT), Mumbai branch, which provides for delisting of equity shares of the company.

Further, the company, vide June 9 announcement said that no value was attributable to the equity shares as per the liquidity valuation of the company estimated by the registered valuers appointed the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate persons) Regulations, 2016.

It was early last week when the Mumbai bench of the National Company Law Tribunal (NCLT) chaired by HP Chaturvedi and Ravikumar Duraisamy, had permitted Piramal Group to take over DHFL under the Bankruptcy code for as low as Rs 37,500 crore against a claim of close to Rs 85,000 crore.

The tribunal on May 25 had asked the committee of creditors to consider the Wadhavans offer of paying back almost Rs 93,000 crore to the lenders and creditors, which was stayed by the NCLAT after the Piramal group challenged it. But on Monday the bench cleared the Piramal bid saying they respected the commercial wisdom of the lenders and thus also rejected the former DHFL promoters' offer to pay back more than 100 per cent of the claims.

Kumud Das

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