Dewan Housing: Gaining traction

Dewan Housing: Gaining traction

Shares of Dewan Housing Finance Corporation (DHFL) were locked in 5% upper price band at Rs 24.60 apiece ahead of the committee of creditors (CoC) meeting on Wednesday to seek fresh bids and vote to decide on it.
Earlier, suitors raised their offer price in the revised bids submitted for the mortgage lender.
Adani Group, Piramal Enterprises, US-based Oaktree and Hong Kong-based SC Lowy submitted 10-70% higher price for either a stake in the company or buying out some of its assets.

CoC has informed all four bidders that their revised bids will be considered only in respect of the asset for which they had initially submitted the resolution plan. No bidder will be allowed to submit a revised or new bid for different group of assets owned by DHFL.

This could mean that the “unsolicited” bid submitted by the Adani Group for acquiring the entire DHFL may not be considered because Adani had initially submitted a bid for only DHFL’s wholesale and slum rehabilitation book.
The Reserve Bank of India (RBI) had in November 2019 referred DHFL to the National Company Law Tribunal (NCLT) for insolvency proceedings. It was the first non-banking finance company (NBFC) to be taken to the bankruptcy court.

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