DHFL tumbles after ICRA downgrade

Dewan Housing Finance Corporation fell 5.08% to Rs 129.75 at 11:18 IST on BSE after ratings agency ICRA revised the short-term rating outstanding for the Rs 8,000-crore commercial paper programme of the company.

Meanwhile, the S&P BSE Sensex was down 271.13 points, or 0.75% to 35,942.25.

On the BSE, 8.98 lakh shares were traded in the counter so far compared with average daily volumes of 21.97 lakh shares in the past two weeks. The stock had hit a high of Rs 132 and a low of Rs 125.45 so far during the day. The stock hit a 52-week high of Rs 690 on 3 September 2018. The stock hit a 52-week low of Rs 97 on 4 February 2019.

 

ICRA has revised the short-term rating outstanding for the Rs 8000-crore commercial paper (CP) programme of Dewan Housing Finance Corporation (DHFL) to [ICRA]A2+ (pronounced ICRA A two plus) from [ICRA]A1+ (pronounced ICRA A one plus). As on date, DHFL has CP outstanding of Rs 1,525 crore. The company has indicated to ICRA that it shall buyback substantial portion of this amount over the next one month.

In its response, DHFL informed that the rating was for outstanding commercial papers of only Rs 1525 crore out of a rated amount of Rs 8000 crore, which forms less than 2% of the company's outstanding borrowings. DHFL also indicated its intent to the rating agency to extinguish the commercial paper outstanding by the end of March.

DHFL added that it will take all remedial measures to protect the interests of all its stakeholders and continue to service all its obligations as it has done in this industry crisis since September 2018.

Net profit of Dewan Housing Finance Corporation (DHFL) declined 36.70% to Rs 313.60 crore on 12.40% rise in total income to Rs 3255.89 crore in Q3 December 2018 over Q3 December 2017.

DHFL provides home loan products including loans on homes, residential plots, construction, LAP or loan against property as also mortgage, non-residential and project loans.

Powered by Capital Market - Live News