Shares of DHFL (Dewan Housing Finance Corporation Limited) rose almost 6 per cent in intra-day trade on Monday, after the housing finance company announced to sell its entire stake in Avanse.
"The special committee of the board of directors considered and accorded approval to disinvest to Olive Vine Investment Limited an affiliate of the Warburg Pincus Group, 1,92,50,719 equity shares constituting 30.63% of the paid up capital of Avanse Financial Services Limited", DHFL said in a filing to the Bombay Stock Exchange.
The share opened at Rs.137.80 with a gap up of 4.39 per cent and touched intra-day high of Rs 139.90, up 6 per cent against the previous close of Rs 132. Although the stock price is lower than 50, 100 and 200-day moving average, it is trading higher than 5 and 20-day moving average.
The share touched its intra-day high of Rs 140 and trading-day low of Rs 134.30 with 1.88 lakh shares changing hands on National Stock Exchange respectively.
DHFL shares have outperformed the housing finance sector by 3.50 per cent. However, DHFL's price movement in both the exchanges has been giving negative returns at 73 per cent in one year, 77 per cent in six months and 2 per cent in one week.
The company has entered into a share purchase agreement with the Avanse and the other sellers including Wadhawan Global Capital Limited (WGC) promoter entity of the company. The transaction is subject to applicable regulatory and other approvals and certain other conditions.
In a separate filing, the loan provider informed the exchanges about corporate reorganisation undertaken within the company, that includes redesignation of the current CFO, Santosh Sharma to a new role as the Head - Corporate Strategy. Among others, the accounts and finance function which was currently supervised by the Chief Financial Officer, shall now be supervised by Vice President-Finance and Vice President-Accounts of the Company, respectively.
(Edited by Rupa Burman Roy)