DHFL nears 14-year low after Edelweiss moves HC to recover dues

Shares of Dewan Housing Finance Corporation (DHFL) were locked in the lower circuit for the second straight day, down 10 per cent at Rs 23.50, on the BSE on Thursday after Edelweiss Asset Management approached the Bombay High Court to recover its dues worth Rs 70 crore from the company. READ IT HERE

The stock of housing finance company was trading at its lowest level since March 2009 and was trading near its 14-year low of Rs 23.25, touched on May 2005. It hit an all-time low of Rs 1.85 (adjusted to 1:1 bonus in September 2015) on July 1990, the CapitalinePlus data shows.

“Our subsidiary, Edelweiss Asset Management, which has various schemes of mutual funds, has approached the Bombay High Court for recovery of principal and interest dues from DHFL, in line with action taken by other peers in the industry,” Edelweiss Financial Services said in a regulatory filing.

Reliance Nippon Life Asset Management has already approached the courts against the troubled financier.

Earlier this week, leading depository Central Depository Services (CDSL) froze shareholding of the promoters of the debt-ridden mortgage lender due to delay in announcement of the company's financial earnings, news agency PTI reported quoting sources.

DHFL on Monday, however, said the board of directors of the company is scheduled to meet on October 17, to consider and approve the un-audited financial results for the first quarter ended June 30, 2019.

In the past one month, the stock of DHFL has tanked 54 per cent from a level of Rs 50.85, as compared to a 2 per cent rise in the S&P BSE Sensex. Thus far in the calendar year 2019, it has plunged 90 per cent from Rs 249, as against a 5 per cent gain in the benchmark index.