DHFL jumps 11% as lenders mull haircuts; restructuring plan likely this week

NEW DELHI: Shares of DHFL climbed 11 per cent in Wednesday’s trade on reports that lenders to the housing finance company (HFC) were ready to accept limited haircuts in a restructuring plan being worked out for the troubled firm.

The country's fourth largest HFC, which warned on Saturday that its financial situation was grim and business had ground to a halt, met lenders and other debt holders last week to discuss the outline of a rescue package, Reuters reported.

Sources said that efforts were being made to reach consensus and sign off on the plan, which is set to be formally submitted to DHFL's lenders this week.


But analysts say the firm may struggle to find buyers for the businesses it wants to sell or attract other investors to raise up to Rs 7,000 crore in extra equity that sources say DHFL wants.

Meanwhile, DHFL will be excluded from the equity derivatives segment on the NSE from September 27.

The shares of the company closed 11.07 per cent higher at Rs 56.20 on BSE.