DHFL board approves draft resolution plan, stock soars 32 per cent

Mumbai-based troubled housing finance firm, Dewan Housing Finance Corporation (DHFL), issued a notification to the stock exchanges which informed that its board has approved a draft of the proposed resolution plan.

The board also approved submission of the resolution plan to the lenders. As part of the resolution plan, DHFL will put a moratorium of repayments and will also seek funding from banks and the National Housing Board for re-starting retail lending. The resolution plan will ensure that there will be no principal haircuts to any creditors and it will also focus on aligning asset-liability mismatch.

DHFL further informed that joint statutory auditors of the firm, Deloitte Haskins & Sells LLP, have submitted their resignation with immediate effect.

On Tuesday, the stock reacted very positively to the news and touched intra-day high of Rs. 58.60, a hike of 40 per cent over the previous close. The stock closed higher by 32 per cent at Rs. 55.40 on the BSE.