Dewan Housing Finance Ltd (DHFL) share price hit 10 per cent upper circuit at Rs 22.85 apiece intraday on BSE, even as the debt-ridden company in an exchange filing said that its shares would be delisted. Analysts suggest investors to stay away from DHFL stock, as it may be written down to zero soon. Also, investors who currently hold DHFL shares are advised to exit and book whatever their profit or loss. Yesterday, DHFL said in an exchange filing that the Mumbai bench of the National Company Law Tribunal (NCLT) approved Piramal Capital & Housing Finance Ltd\u2019s insolvency resolution plan with certain conditions.<\/p>\n\n\n\n
\u201cAs part of the Resolution Plan, the equity shares of the company are proposed to be delisted,\u201d it said in a BSE filing. The shares, when delisted, would most likely become worthless. The resolution plan had already received approvals from the RBI in February and the Competition Commission of India (CCI) in April 2021.<\/p>\n\n\n\n
DHFL stock at upper circuit: What should investors do now? Given that $DHFL<\/a> may be delisted and the value of the shares may be written off to zero, this is the nudge we are showing on Kite to warn users of the risks. pic.twitter.com\/0cml99TEgG<\/a><\/p>— Zerodha (@zerodhaonline) June 8, 2021<\/a><\/blockquote>
<\/strong>DHFL shares were locked in a 10 per cent upper circuit for the second straight day on Tuesday. Since June 2, the stock price has been mapping an upward trajectory, surging 27 per cent to date. India\u2019s largest brokerage firm Zerodha, in a tweet, warned investors that the value of DHFL shares may be written down to zero. \u201cEquity shares of DHFL are likely to be extinguished as part of acquisition of the company due to NCLT\u2019s insolvency process. There can be a significant risk of you losing your entire investment by trading in this stock,\u201d it said in a tweet. It also said that DHFL stock is at the upper circuit price today because there are no sellers. \u201cBuy order will remain pending until filled,\u201d it added.<\/p>\n\n\n\n