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This stock rose 11% today; here's why

The share has delivered 100 per cent returns in the last 12 months and risen 52 per cent since the beginning of this year

twitter-logoBusinessToday.In | June 8, 2021 | Updated 17:58 IST
The share has delivered 100 per cent returns in the last 12 months and risen 52 per cent since the beginning of this year.
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Share of Piramal Enterprises rose 11 per cent to hit a 52-week high of Rs 2183.25 on BSE a day after the National Company Law Tribunal (NCLT) approved the resolution plan of Piramal Group for bankrupt Dewan Housing Finance Ltd (DHFL).

The stock ended 10.53 per cent higher at Rs 2167.15 against the previous close of Rs 1960.75 on BSE. Market cap of the firm rose to Rs 48,877.54 crore.

The share has delivered 100 per cent returns in the last 12 months and risen 52 per cent since the beginning of this year.

In January, Piramal Capital and Housing Finance Ltd, a subsidiary of Piramal Enterprises Limited, had won the bid for acquiring DHFL. Piramal made a Rs 37,250-crore bid to acquire the housing finance company.

The resolution plan had received approvals from RBI in February 2021 and Competition Commission of India (CCI) in April 2021.  

The Mumbai bench of NCLT, chaired by HP Chaturvedi and Ravikumar Duraisamy, said the approval for the Piramal Group's offer is subject to final judgment from the National Company Law Appellate Tribunal (NCLAT) and Supreme Court's judgment on former DHFL promoter Kapil Wadhawan in the matter.

The bench also asked the Committee of Creditors (CoC) to consider giving more money to small fixed deposit holders under the approved resolution plan. "We are not remanding the plan back to CoC, we respect their commercial wisdom," it said.

It also rejected Wadhawan's plea to get access to a copy of the resolution plan.

On May 25, the National Company Law Appellate Tribunal (NCLAT) stayed an order passed by the Mumbai bench of NCLT asking the lenders of bankrupt Dewan Housing Finance Ltd (DHFL) to consider the resolution plan of the company's former promoter Kapil Wadhawan.

NCLAT's final order is pending on this matter.

Last year, Wadhawan had made his settlement offer to the CoC which was rejected due to lack of credibility and the valuations attached to the proposed asset sales. In the plan, Wadhawan had proposed to repay lenders by selling assets.

DHFL had gone bankrupt with more than Rs 90,000 crore in debt to various lenders, including banks, mutual funds, and individual investors who kept fixed deposits with the company.

The lenders of the company classified the account as a fraud on alleged fund diversion by promoters Kapil Wadhawan and his brother Dheeraj Wadhawan.

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