Indian Share Markets Open Flat; Cipla & ONGC Top Gainers

How Shyam Metalics' IPO sails through remains to be seen.

Moving on to news from the finance sector, Dewan Housing Finance Corp. (DHFL) is among the top buzzing stocks today.

63 Moons Technologies on Tuesday said it is going to challenge NCLT's approval of the DHFL resolution plan.

The National Company Law Tribunal (NCLT) had approved the resolution plan of Piramal Capital and Housing Finance (PCHFL) for DHFL earlier this week.

63 Moons wants the creditors of DHFL to receive the money, instead of the buyer (PCHFL), in case of recovery happens in the alleged fraudulent transactions by former promoters.

In a release, the company said it believes the current resolution plan is contrary to law and against the interest of all DHFL's creditors including NCD holders. The company holds over Rs 2 bn non-convertible debentures (NCD) of DHFL.

Meanwhile, fixed deposit (FD) holders of DHFL are planning to approach higher courts against the NCLT order as they want their full money back.

The administrator of DHFL had filed applications for recovery of almost Rs 450 bn under the Insolvency and Bankruptcy Code (IBC) against DHFL's promoters and other persons on account of their fraud against the creditors.

The contention of 63 Moons is that Rs 450 bn must come to the defrauded parties, instead of the buyer.

Note that shares of DHFL have been rising continuously, even though the company is about to delist its shares from the exchanges as part of its bankruptcy resolution.

DHFL's share price has opened the day down by 10%.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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