DHFL share price posts biggest jump in nearly 30 years after debt resolution plan

By: |
August 6, 2019 4:59 PM

The shares rallied 32% to 55.4 rupees at the close, the steepest climb since March 1992.

Under the draft proposal, creditors won’t have to take a haircuts on principal payments, according to an exchange filing Tuesday.

Dewan Housing Finance Corp. surged by the most in nearly three decades after the struggling Indian financier said it plans to secure funds from banks to restart retail lending under its draft proposal to repay lenders.

The shares rallied 32% to 55.4 rupees at the close, the steepest climb since March 1992. The mortgage lender has seen its market value collapse more than 90% in the past year after default at the IL&FS Group last September led to a crippling liquidity crisis for the nation’s shadow banks.

Under the draft proposal, creditors won’t have to take a haircuts on principal payments, according to an exchange filing Tuesday. The company also seeks a moratorium on repayments and align asset-liability mismatches.

The proposal, which is yet to be submitted to creditors, was approved after discussion with financial advisor Ernst & Young Ltd., the company said. Dewan has about 63.6 billion rupees of bond payments due this quarter.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Sensex rallies 835 points as banks, IT lead charge
2Global stocks turn lower, with S&P facing 4th week of losses
3Yes Bank: Sebi slaps Rs 1 crore fine on Rana Kapoor for disclosure lapses