After news of Piramal Grp bagging DHFL, share prices of the latter jump

New Delhi: After news of Piramal Group bagging DHFL, the shares of the troubled home finance company jumped almost 5 percent in morning trade on Tuesday on BSE. The company’s scrip was trading at Rs 28.85 a piece in the morning trade on BSE, a jump of 4.91 percent since Monday’s close. 

On Monday, the Committee of Creditors (CoC) of DHFL approved resolution plan offered by Piramal Capital and Housing Finance Ltd, a Piramal Group company for Rs 37,250 crore for the beleaguered company. Piramal Capital offered higher upfront cash payment as compared to Oaktree, another suitor, which had offered Rs 38,400 crore in total. In addition to this, Piramal Capital had offered additional money in resolution process to DHFL’s fixed deposit holders over and above the amount that CoC had offered them by way of resolution process.

The overall debt of DHFL currently stands at Rs 90,000 crore. The company, once the largest non banking financial company, started defaulting in payments to creditors in 2019. 

Adani Grp, USA’s Oaktree Capital Management and Piramal Grp were invited to take over the company by way of IBC resolution process. 

DHFL’s promoters Kapil and Dheeraj Wadhawan are in jail since last year for alleged financial mismanagement. They have been arrested under Prevention of Money Laundering Act (PMLA).