DHFL Becomes First Financial Services Firm to Be Taken to NCLT

Yes Bank to raise $2bn through preferential share allotment. RBI files insolvency proceedings against DHFL. DHFL becomes first financial services firm to be taken to NCLT. 

 

FINANCIAL INSTITUTIONS

Yes Bank to raise $2bn through preferential share allotment.

Swipe Right: Private-lender Yes Bank in a regulatory filing has said it has increased the size of its preferential share allotment to $2bn from the earlier guidance of $1.2bn on the back of “strong interest” shown by NRI investors, including a $1.2bn offer by Erwin Singh Braich and SPGP Holdings, and $500mn by Citax Holdings and Citax Investment Group.

 

Other prominent suitors include the Aditya Birla Family Office ($25mn), GMR Group and Associates ($50mn), and Rekha Jhunjhunwala ($25mn). Business Today

RBI files insolvency proceedings against DHFL.

In Bad Books: The Central Bank has filed for insolvency proceedings against Dewan Housing Finance Corp. Ltd (DHFL). Under the new norms, an interim moratorium will apply on the housing financier until the case is either admitted or rejected by the National Company Law Tribunal (NCLT).

 

DHFL has an outstanding debt of INR83,873cr. 

 

The RBI had first announced on Nov. 20 that it has superseded DHFL’s board and appointed an administrator to run the company. It has also appointed a three-member advisory committee to help the administrator it appointed to manage the company. Bloomberg Quint

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