DHFL gains 4% as lenders agree to sign inter-creditor pact

NEW DELHI: Shares of housing finance company DHFL climbed 4 per cent in Tuesday’s trade after the large lenders to the debt-laden firm agreed to sign an inter-creditor agreement (ICA) on July 5 and considered a resolution plan for the beleaguered firm.

The scrip rose 4 per cent to hit a high of Rs 76.55 in early trade. It lost some ground as the session progressed. At 10 am, the scrip was up 0.88 per cent at Rs 74.25.

Bankers to DHFL met on Monday and agreed in principle to sign an ICA which is mandatory for any revival plan according to the new framework for restructuring of stressed loans which came into effect from June 7.


The lenders are trying to rescue the non-bank lender with outstanding debt of over Rs 1 lakh crore and prevent a default.

“Monday’s meeting was a preliminary one to decide on signing the ICA. The large banks have now agreed to sign the ICA which will form the basis of any restructuring plan. Banks have now decided to meet again on July 5 to sign the ICA. A resolution plan will be debated only after the ICA is signed,” said a senior bank executive.

The shares of the company closed 2.31 per cent higher at Rs 75.30 on BSE.