Shares of Dewan Housing Finance Corporation (DHFL) jumped nearly 9 percent intraday on September 25 ahead of the company's meeting with its lenders.
"The company will be holding a meeting on September 25 with its bank lenders to discuss the draft resolution plan. A further meeting will also be held on September 27 by the company with all its institutional creditors in connection with the draft resolution Plan," the company said in a BSE filing on September 24.
CNBC TV18 reported that the company's resolution plan includes lenders taking over 60 percent in the company using SEBI pricing formula and the banks eye 2-3 board seats in the company after the acquisition of majority stake as they are looking to appoint new CEO, CFO & CRO For DHFL.
The debt of about Rs 2,000 crore may be converted to equity by banks. Promoters' stake will fall to below 10 percent after the implementation of the resolution plan.
DHFL's total liability is over Rs 85,000 crore in which banks have an exposure of about Rs 30,000 crore.
Banks may give new loans to DHFL under the new resolution plan. Meanwhile, State Bank of India has sought SEBI's nod for a one-time exception for mutual funds to be part of the resolution.
Additionally, media reports suggested that the company is in talks with Oaktree Capital to sell its entire wholesale lending book of Rs 38,000 crore.
The Hindu reported that the "cash-strapped mortgage lender is negotiating with Oaktree Capital, an alternative investment management fund, to sell its entire wholesale lending book of Rs 38,000 crore, which includes the project finance portfolio and Slum Rehabilitation Authority (SRA) projects."
Shares of DHFL traded 5.90 percent up at Rs 47.55 on BSE around 1207 hours.
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