NCLAT disposes of appeals against Piramal's resolution plan for DHFL; Stock rallies 4%

28 Jan 2022 , 11:37 AM

Piramal Enterprises stock rallied on Friday after the NCLAT disposed of most appeals filed against Piramal’s approved DHFL resolution plan.

In its regulatory filing, today, Piramal stated that regarding the Piramal’s Resolution plan, most appeals filed by several parties before the NCLAT against Piramal’s approved DHFL resolution plan were disposed of on January 27, 2022.

As per Piramal, in the case of one of the appeals, which was limited to the extent of challenging the distribution of proceeds (if any) from fraudulent transactions to the benefit of the Resolution Applicant, NCLAT has ordered it to be re-considered by the Committee of Creditors (CoC). We have analyzed the detailed judgment of the NCLAT and consulted our legal advisors. We are confident and will continue to pursue the matter as multiple legal options are available to us for our future course of action, including approaching the Apex court.

"The DHFL acquisition by Piramal Group remains unaffected and the business integration continues as envisaged. The integration comprises assimilating into Piramal’s culture and ethos of people, practices and processes," Piramal said.

In September 2021, PCHFL acquired DHFL for a total consideration of Rs34,250cr. PCHFL has retained over 3,000 employees of the DHFL Group and is also adding over 2,000 new jobs in the merged entity. The new origination of Affordable Housing loans has been restarted at all 301 branches across the country.

At around 11.31 am, Piramal was trading at Rs2395.75 per piece up by Rs92 or 3.99% on Sensex. The stock was near the day's high of Rs2419.10 per piece.