Business Today

DHFL share price recovers after three days, rises up to 10%

Dewan Housing share price opened with a gain of 4.19% at Rs 87 level compared to the previous close of 83.50 level in trade today. The stock touched an intraday high of Rs 91.40 (9.46%).

twitter-logo BusinessToday.In        Last Updated: June 10, 2019  | 12:34 IST
DHFL share price recovers after three days, rises up to 10%
Dewan Housing share price opened with a gain of 4.19% at Rs 87 level compared to the previous close of 83.50 level in trade today. The stock touched an intraday high of Rs 91.40 (9.46%).

Dewan Housing Finance Corporation Ltd (DHFL) share price rose in early trade today recovering from recent losses after Crisil and ICRA lowered their ratings on Rs 850 crore worth of commercial paper of DHFL to 'default' from 'A4' due to the mortgage lender's deteriorating liquidity condition.

Dewan Housing share price opened with a gain of 4.19% at Rs 87 level compared to the previous close of 83.50 level in trade today. The stock touched an intraday high of Rs 91.40 (9.46%).

J&K Bank shares plunge up to 20% after govt starts probe against former bank chairman

Dewan Housing Finance share price has lost 85.80% during the last one year and fallen 64.64% since the beginning of this year. Dewan Housing share price has gained after three days of consecutive fall.

Last week on Friday, the share price hit its fresh 52-week low of 80.75 level on BSE after Crisil and Icra lowered their ratings on the company. On Wednesday, Crisil and ICRA downgraded their ratings on Dewan Housing Finance and removed the firm from watch with negative implications by both the rating agencies.

Crisil, in a note, said the downgrade to 'default' or 'D' reflects delays in debt servicing by DHFL on some of its non-convertible debentures (NCDs) because of inadequate liquidity. The payments were due on June 4, 2019. The NCDs are not rated by Crisil.

Titan stock from Rakesh Jhunjhunwala's portfolio continues to scale new highs

In a separate note, Icra said, "The rating revision factors in further deterioration in company's liquidity profile and delays in meeting scheduled debt obligation on June 04, 2019." Icra added that given the stretched liquidity profile and limited visibility on fresh funding, the company is unlikely to be able to service its debt obligation with regard to commercial paper programme in a timely manner. The company has commercial paper (CP) worth Rs 750 crore maturing in June 2019 with the first repayment on June 7.

The ratings downgrades signal the structural issues prevailing in the country's non banking finnace company sector. The crisis in the NBFC sector has attracted attention of the new RBI governor.

On Saturday, RBI governor Shaktikanta Das said, "In the coming months, his first and the foremost task would be to address governance reforms in banks and non-banking space."

Edited by Aseem Thapliyal

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close