DHFL jumps 5% on news of plan to rope in strategic partner

Shares of DHFLNSE 3.87 % wiped out early losses and jumped up over 5 percent in Monday’s trade after the company said the promoters intend to sell a stake and rope in a strategic partner. 

DHFL jumps 5% on news of plan to rope in strategic partner



Following the announcement, the stock climbed 5.11 percent to hit a high of Rs 117.15 pm on BSE. The scrip had fallen to a five-year low of Rs 97 earlier in the session. 

The company hosted an investor call at 10.00 am to address various queries raised by investors in the last few days, post the allegations against the company made by CobraPost. 

“Allegations of financial irregularities are false and the motivation of complaint was to bring down DHFL in the marketplace, ET Now quoted Chairman and MD Kapil Wadhawan as saying. 

CobraPost, known for investigative journalism, has alleged that promoters of the company siphoned off Rs 31,000 crore. The company has maintained that the allegations of financial irregularities have been made by a person who is neither a shareholder nor borrower of the company. 

Meanwhile, rating company CARE has cut by a notch the creditworthiness of about Rs 1.2 lakh crore of outstanding securities at home financier, pointing to higher funding costs for para banks that have been buffeted by a series of defaults at infrastructure financier IL&FS. 

Bonds, deposits and loans raised by DHFL from banks, mutual funds, insurers and superannuation funds faced the downgrade, with CARE citing DHFL’s shrinking share value and expanding borrowing costs to justify its rating action, it said. 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.