Mumbai, Maharashtra [India]: One of the shareholders from the Dewan Housing Finance Corporation (DHFL)’s had filed a petition seeking a stay on the delisting of the company’s shares; this petition was recently admitted by the Bombay High Court. DHFL’s equity value was to be pegged at zero, once the Piramal group acquires it. DHFL will then be merged with Piramal group’s financial services business.
This case will be heard by the High Court at the end of April; as of now, notices have been sent to all the parties involved.
The current SEBI regulations state that an acquirer, after meeting certain parameters, must come with an open offer with the most competitive prices, which will benefit all the shareholders. But, in this case, the small shareholders are being unreasonably punished by authorities who have valued their shares at zero, without giving any open offers.
The law firm Ganesh & co pointed out that, had such a situation occurred in the US/UK/Singapore, would have required approval from all the shareholders. The restructuring regime in Singapore holds the view that shareholder approval will be required in restructuring involving debt-equity share swaps, or major sales of the assets in pre-packs. But in the Indian IBC and SEBI delisting regulations, creditors get far more power which allows them to dilute the rights of the shareholders.
Punit Nangalia, the shareholder, in this case, submitted to the court that in course of the usual delisting of shares of a listed entity, the offer price for exit to existing shareholders is to be determined through book building. SEBI regulation further states that the floor price will be determined in terms of the Takeover Regulations.
SEBI regulations provide that the acquirer will make an open offer for acquiring shares according to various parameters, and the formulae to arrive at the most competitive prices will be given in an open offer to all shareholders that will also benefit retail Shareholders.
But when it came to the DHFL acquisition, these regulations were not followed, and the retail shareholders are being punished by the authorities for no fault of theirs by being zero valuation.
This petition also challenges the insolvency code, which does give any valuation to retail Shareholders.
Thanks for the auspicious writeup. It in truth was once a entertainment account it. Glance complex to more added agreeable from you! By the way, how could we keep up a correspondence?
Would you be fascinated with exchanging links?
Good day! Do you know if they make any plugins to assist with Search Engine Optimization? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good success. If you know of any please share. Thank you!
Great post but I was wanting to know if you could write a litte more on this topic? I’d be very thankful if you could elaborate a little bit more. Many thanks!
I simply could not depart your web site before suggesting that I extremely loved the usual info an individual supply on your guests? Is going to be again regularly to inspect new posts.
Thanks, I have just been searching for information about this subject for ages and yours is the best I have came upon so far. However, what concerning the conclusion? Are you positive in regards to the source?
Everything is very open and very clear explanation of issues. was truly information. Your website is very useful. Thanks for sharing.
What’s Taking place i’m new to this, I stumbled upon this I have discovered It absolutely useful and it has aided me out loads. I am hoping to contribute & aid different users like its aided me. Good job.
fantastic issues altogether, you just gained a new reader. What could you suggest in regards to your put up that you just made a few days in the past? Any sure?
Thank you, I have just been looking for info approximately this topic for a while and yours is the best I have came upon so far. But, what about the bottom line? Are you certain about the supply?
I love it when people come together and share opinions, great blog, keep it up.
Thanks for the sensible critique. Me & my neighbor were just preparing to do a little research on this. We got a grab a book from our area library but I think I learned more clear from this post. I’m very glad to see such magnificent information being shared freely out there.
Perfectly pent written content, regards for entropy. “Life is God’s novel. Let him write it.” by Isaac Bashevis Singer.
I like this site very much, Its a real nice spot to read and receive info .