The circulars stated that DHFL had informed the exchanges on June 8 regarding approval of the resolution plan by the Mumbai bench of National Company Law Tribunal (NCLT), which provides for delisting of equity shares of the company.
“Further, the company vide announcement dated June 9, 2021 stated that no value was attributable to the equity shares as per the liquidation value of the company estimated by registered valuers appointed under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016,” the added.
NCLT has approved the resolution plan by Piramal Group for DHFL, resulting in zero value for the shares of DHFL. Despite this, the stock was being actively traded. However, the company has also mentioned that the written order of the NCLT approving the resolution plan is still awaited and all disclosures made remain subject to such orders.
In pursuance of Regulation 3.1.2 of the National Stock Exchange (Capital Market) Trading Regulations Part A, and for reasons mentioned above, it is hereby notified that the following security will be suspended from trading w.e.f. June 14, 2021 (that is closing hours of trading on June 11, 2021), the NSE circular said.
DHFL has been a very active counter recently. The counter hit lower circuit limits throughout the week. The bourses revised its circuit limit to 10 per cent from 5 per cent earlier, but had to again cut back those levels to the earlier levels. Over 30 lakh shares of DHFL were traded on Friday.
The housing finance firm was in the spotlight since September 2019, when the IL&FS crisis broke out. The commercial papers of DHFL were downgraded after it defaulted on a series of payments.
The company went bankrupt and owed over Rs 90,000 crore to its lenders, before becoming the first financial services firm to be taken to NCLT. In November 2019, the Reserve Bank of India referred DHFL for resolution under Insolvency and Bankruptcy Code (IBC).
