<p>Shares in India's Dewan Housing Finance Corp Ltd (DHFL) jumped on Monday after the troubled mortgage lender's creditors voted in favour of a $5 billion takeover bid from the Piramal Group.</p>.<p>The stock, which gained 76 per cent last year after two years of sharp falls, rose 5 per cent in early trading and hit an upper price limit of 27.55 rupees.</p>.<p>Once one of India's biggest non-banking financial companies (NBFCs), or "shadow" banks, DHFL had accumulated debts of almost 1 trillion rupees ($13.7 billion) before defaulting on payments to its creditors.</p>.<p>The NBFC industry, a key source of credit to millions, has been plagued by a credit crunch triggered by the collapse of lending major IL&FS in 2018.</p>.<p><strong><a href="https://www.deccanherald.com/business/billionaire-ajay-piramal-to-take-over-dhfl-940342.html">Read | Billionaire Ajay Piramal to take over DHFL</a></strong></p>.<p>Three entities - Adani Group, Piramal Group and US-based asset manager Oaktree Capital Management - had been invited to bid for DHFL's entire loan book.</p>.<p>DHFL's creditors chose Piramal Capital and Housing Finance Ltd, a unit of billionaire Ajay Piramal's conglomerate Piramal Enterprises, DHFL told stock exchanges on Sunday.</p>.<p>"There may be a risk of litigation from co-bidders as some offered higher value," Jefferies said in a report on Sunday.</p>.<p>The outcome was a "marginal positive" for banks that have exposure to DHFL, including state-run Bank of India, Canara Bank and Union Bank of India and private-sector lenders such as Yes Bank, Jefferies added.</p>.<p>India's central bank is likely to propose tightening rules on shadow banks in a bid to strengthen the stressed sector's solvency and sustainability, Reuters reported on Saturday.</p>
<p>Shares in India's Dewan Housing Finance Corp Ltd (DHFL) jumped on Monday after the troubled mortgage lender's creditors voted in favour of a $5 billion takeover bid from the Piramal Group.</p>.<p>The stock, which gained 76 per cent last year after two years of sharp falls, rose 5 per cent in early trading and hit an upper price limit of 27.55 rupees.</p>.<p>Once one of India's biggest non-banking financial companies (NBFCs), or "shadow" banks, DHFL had accumulated debts of almost 1 trillion rupees ($13.7 billion) before defaulting on payments to its creditors.</p>.<p>The NBFC industry, a key source of credit to millions, has been plagued by a credit crunch triggered by the collapse of lending major IL&FS in 2018.</p>.<p><strong><a href="https://www.deccanherald.com/business/billionaire-ajay-piramal-to-take-over-dhfl-940342.html">Read | Billionaire Ajay Piramal to take over DHFL</a></strong></p>.<p>Three entities - Adani Group, Piramal Group and US-based asset manager Oaktree Capital Management - had been invited to bid for DHFL's entire loan book.</p>.<p>DHFL's creditors chose Piramal Capital and Housing Finance Ltd, a unit of billionaire Ajay Piramal's conglomerate Piramal Enterprises, DHFL told stock exchanges on Sunday.</p>.<p>"There may be a risk of litigation from co-bidders as some offered higher value," Jefferies said in a report on Sunday.</p>.<p>The outcome was a "marginal positive" for banks that have exposure to DHFL, including state-run Bank of India, Canara Bank and Union Bank of India and private-sector lenders such as Yes Bank, Jefferies added.</p>.<p>India's central bank is likely to propose tightening rules on shadow banks in a bid to strengthen the stressed sector's solvency and sustainability, Reuters reported on Saturday.</p>