Dewan Housing Finance Corporation (DHFL) spiked 5 percent intraday on February 26 after the company said it had filed an application with the National Company Law Tribunal (NCLT) for the submission of the resolution plan of Piramal Capital & Housing Finance.
Pursuant to the receipt of no objection from Reserve Bank of India as per Insolvency and Bankruptcy Rules, 2019, the DHFL administrator has filed an application for submission of resolution plan of Piramal Capital & Housing Finance Limited (PCHFL) with NCLT's Mumbai Bench, the company said in an exchange filing.
The RBI recently gave the nod to billionaire Ajay Piramal’s Piramal Group for the takeover of the embattled mortgage lender. The go-ahead comes almost a month after Piramal Group won the bidding war for the struggling mortgage lender beating competitors that included Oaktree.
Oaktree's bid for DHFL was at Rs 38,400 crore against Piramal's Rs 37, 250 crore. Piramal's offer, however, had a higher upfront cash payment and that swung support in its favour.
The resolution plan was approved by the Committee of Creditors (CoC). In November 2019, the Reserve Bank had referred DHFL, the third-largest pure-play mortgage lender, to the NCLT for insolvency proceedings.