I would be grateful if insolvency / CA /legal professional explain what holds the future of DHFL? Are my shares now worth nothing? Is anyone else going to take over it? Will the company start working post all these proceedings against it?
We dont have any insolvency professional here?
Itâs a leveraged business. What is left of it? Does it have a brand name or intangibles? Equity of DHFL is priced at 400 odd crores market cap which seems generous. What is the rational for expecting anything for past shareholders when there is no tangible or intangibles left for common stock holders?
Estimated Value( Crores)
DHFL Cash on hand 16,000
Retail Portfolio 30,000
Loans to Slum Rehab Authority 22,000
68,000
Bids(Crores):
1 Oaktree 31,000
2 Piramal 26,000
3 Adani Group( for the Slum Rehab Auth Book & Wholesale book) 2,700
4 Offer by Kapil Wadhawan **
** protect entire principal of NCD holders and Fixed deposit holders
Conversion of part debt into equity
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So is Adani going to takeover the whole company or just loans? What is going to be the future of retail shareholders?
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Any-thoughts on this ?
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All depends on the outcome of the resolution processâŚRetail investors holding bonds in smaller quantities may get an even better deal but that needs to be seen.
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yeah but there is some limit on that - less than 5 lac may covers 90% of the retail.
which if we go buy today will be around 1.5 lac, So if this happens you can earn 5 lacs on 1.5 lacs invested in it.
pretty good deal to be honest. whereas any amount bought above 1.5 lac could potentially yield 20-30% ( this is high probability scenario) not what mentioned above - full repayment to retail.
Retail investors are classified as those with cumulative holding of Rs 10 lakhsâŚearlier they were saying that they will honor all payments to this category.
Somewhere along the way this has been reduced to 5 lakhsâŚincidentally even the bank depositor insurance is capped at this amount.
The problem with DHFL is that there are big gaping holes in the balance sheet,otherwise how does one have a haircut of 50-60%?
While it may be tempting to play for a quick buck this is worthwhile only for those who are willing to treat it as a lottery ticketâŚbut for those who have their savings stuck here I really pray and hope they do get their money back.
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This is not lottery ticket - You have bonds selling in market at 70% discount and somebody Oak tree , Adani and Piramal ready to buy it at 60% discount already.
There is pure arbitrage condition here. Lets not call an arbitrage a lottery ticket. Lets keep the standard of discussion on this forum high.
This is not lottery ticket - You have bonds selling in market at 70% discount and somebody Oak tree , Adani and Piramal ready to buy it at 60% discount already.
There is pure arbitrage condition here. Lets not call an arbitrage a lottery ticket.
I can sympathize with people who bought the DHFL bonds but lets not use this forum for this purpose.
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I never intended to have any conflict with you,but I strongly object to your statement that I am trying to use this forum for some agenda or that I am lowering the standard in any way.
This is not a case of pure arbitrage as lots of issues are yet to get clarity,nothing here can be exactly quantified or definedâŚnot the amount and not the time frame, there are multiple legal cases pending even as the CIRP process is going on.
Upfront cash being offered is approx Rs 12700 Crore by Piramal and Rs 11700 by Oaktree,so 2% would be about Rs 234-254 Cr.
Very interested to see how this process pans out over the next few weeks.
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Since either of the options of voting âYes or Noâ would affect NCD holders (per the Moneylife article), what should retail bond holders should do? Join with 63Moons to petition NCLT? Is it not the duty of Catalyst (Deb Trustee) to protect the Bond holdersâ interest? (NB: Now one understands why Piramal was willing to pay slightly âhigherâ amount to FD Holders!!)
All the discussion is revolving around debt holders. But what about share investors? Is Piramal going to buy the whole company? Will that be positive for stock investors? Share price is quite fluctuating since some time.
NCLT atlast gives order for delisting of DHFL which was bought by Piramal Enterprise (Ajay Piramal - in relation with Mukesh Ambani), Piramal to demerge its Financial and Pharma segment and list it soon of SE.
So existing retail shareholders will get nothing⌠i understand. The only hope is if Supreme Court gives a verdict in favour of Wadhwan.
All creditors made committees and got back whatever they could, but unfortunately retail shareholders did not actively raised their concerns.
Lets close this thread now ? Or is there any hope left ? What happened to SC appeal made by Kapil Wadhawan ?