(Bloomberg) -- Dewan Housing Finance Corp. surged by the most in nearly three decades after the struggling Indian financier said it plans to secure funds from banks to restart retail lending under its draft proposal to repay lenders.
The shares rallied 32% to 55.4 rupees at the close, the steepest climb since March 1992. The mortgage lender has seen its market value collapse more than 90% in the past year after default at the IL&FS Group last September led to a crippling liquidity crisis for the nation's shadow banks.
Under the draft proposal, creditors won't have to take a haircuts on principal payments, according to an exchange filing Tuesday. The company also seeks a moratorium on repayments and align asset-liability mismatches.
The proposal, which is yet to be submitted to creditors, was approved after discussion with financial advisor Ernst & Young Ltd., the company said. Dewan has about 63.6 billion rupees of bond payments due this quarter.
To contact the reporter on this story: Divya Patil in Mumbai at dpatil7@bloomberg.net
To contact the editors responsible for this story: Andrew Monahan at amonahan@bloomberg.net, Anto Antony, Ravil Shirodkar
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