DHFL hopes to get the resolution plan cleared by lenders soon
DHFL hopes to get the resolution plan cleared by lenders soon

DHFL stock jumps 12 pc on investor proposals to buy stake

ANI | Updated: Jul 23, 2019 13:04 IST

Mumbai (Maharashtra) [India], July 23 (ANI): Shares of Dewan Housing Finance Corporation (DHFL) moved up sharply on Tuesday as the private lender reported receiving investor proposals for buying stake in the company.
At 12:45 pm, the stock was trading 12.36 per cent higher at Rs 58.95 apiece.
"There have been discussions for stake sale by the promoters to a strategic partner with further equity infusion," DHFL informed stock exchanges in regulatory filings late on Monday night after a marathon board meeting. DHFL promoters currently hold 40 per cent.
In a board meeting, the DHFL received non-binding indicative term sheets as a part of the corporate restructuring plan. The troubled lender said it is in the process of submitting a resolution plan and the lenders are expected to give an in-principle approval by the end of July.
It added that the company planned to monetise its assets and is in talks with domestic banks as well as international financial institutions to sell off its retail and wholesale portfolio. It had cancelled the Employee Stock Appreciation Rights (ESAR) scheme and the rights granted under the plan with effect from March 20.
"The ability of the company to continue as a going concern is predicated upon its ability to monetise its assets, secure funding from the bankers and investors, restructure its liabilities and recommence its operations," it said.
However, auditors have listed qualifications and disclaimers to the company's March quarter results saying that the company has not been able to obtain sufficient evidence to provide a basis for an audit opinion.
"All these developments raise a significant doubt on the ability of the company to continue as a going concern and therefore it may be unable to realise its assets and discharge its liabilities including potential liabilities in the normal course of business," said the auditors Chaturvedi & Shah LLP and Deloitte Haskins & Sells LLP.
The company declared its March quarter results after months of delay on July 13 and reported a loss of Rs 2,223 crore. (ANI)

iocl
iocl