The BSE and NSE have decided to suspend trading in the shares of Dewan Housing Finance Corporation Ltd (DHFL) from Monday.
The development follows the approval of the resolution plan of Piramal Capital & Housing Finance Ltd to acquire the bankrupt company.
Delisting of the shares has been done as part of the resolution plan of the Piramal Enterprises' subsidiary.
"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 (i.e. closing hours of trading on 11 June 2021)," said an NSE circular.
It noted that the company through 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.
On June 7, the Mumbai bench of NCLT approved the resolution plan of Piramal Capital & Housing Finance Ltd for DHFL.
Piramal Capital & Housing Finance Ltd is a wholly owned subsidiary of Piramal Enterprises.
The approval came after the National Company Law Appellate Tribunal (NCLAT) on May 25 stayed the NCLT order directing DHFL's Committee of Creditors (CoC) to consider the settlement of its former promoter Kapil Wadhawan.
On Friday, shares of DHFL on the BSE closed at Rs16.70, lower by 9.97% from its previous close.
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