InvestorQ : What is the road ahead now for Dewan Housing and is there any scope for rescue of the stock at current levels?
Arti Chavan made post

What is the road ahead now for Dewan Housing and is there any scope for rescue of the stock at current levels?

Answer
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8 months ago


With the time elapsing since the first signs of trouble at DHFL, the lenders will now float a combined bid for DHFL’s retail and wholesale books. This will be done in the third week of January after the funding book starts. The resolution professionals have confirmed that if the company does not get interest for the combined asset then it will float separate bids. DHFL is the first financial services company to be admitted to NCLT after rules were changed. The RBI superseded the board and appointed an administrator to resolve the massive Rs.85,000-crore debt issue at DHFLL.

But there could be some key challenges. For example, DHFL has a diverse set of creditors and each of them is governed by multiple regulatory authorities. For example, private equity firms like Apollo Capital and Cerberus were in talks to buy a stake and revive Dewan Housing. New investors were to buy 26% by way of fresh issuance of shares and shareholding will be reduced proportionately by all equity holders, with the promoters diluting their stake proportionately . DHFL had stopped paying creditors after the October 10 court order to refer the company to the bankruptcy court. The original order was modified to allow payments in securitisation deals alone.