DHFL trades lower for fourth straight day, declines 13%

The stock slipped 13 per cent to Rs 41 and was trading close to its 52-week low of Rs 37 touched on August 23, 2019.

Shares of Dewan Housing Finance Corporation (DHFL) were trading lower for the fourth straight day, down 13 per cent to Rs 41 on the BSE on Friday in an otherwise strong market after the company defaulted on principal and interest payments on non convertible debentures (NCDs) aggregating Rs 105 crore. The stock of the housing finance company was trading close to its 52-week low of Rs 37 touched on August 23, 2019.

At 02:53 pm, DHFL was quoting 9 per cent lower at Rs 43 on the BSE, as compared to a 5 per cent rally in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 40.8 million shares changing hands on the NSE and BSE so far.

On Tuesday, September 17, DHFL in a stock exchange notice said the company defaulted on the total amount of Rs 105 crore towards principle and interest amount on the NCD with gross principal amount of Rs 100 crore. Also, the housing finance company defaulted on interest amount of Rs 9.43 crore on another NCD series issued to a single investor.

In a separate regulatory filing on Thursday, DHFL said the company has got proposal from a developer to act as development managers in certain projects including projects taken under slum rehabilitation scheme.

The Company has been, and is working towards its Resolution Plan which has been examined by the board and recommended to lenders. The Company has formulated the draft resolution plan under the Reserve Bank of India's (RBI) prudential framework for resolution of stressed assets guidelines dated June 7, 2019, it added.