DHFL share price recovers after company denies Rs 31,000 crore fund diversion report

By: | Published: January 30, 2019 12:21 PM

Shares of DHFL on Wednesday recovered after the company management assured investors about adequate liquidity to meet commitments for the coming year.

“Loans have been lent basis the guidelines laid out by National Housing Board, and there is no deviation from these norms,” company officials said.

Shares of DHFL on Wednesday recovered after the company management assured investors about adequate liquidity to meet commitments for the coming year. The shares of home loan provider pared early losses and traded 6.76 per cent down at Rs 158.55 after a conference call by company’s management yesterday evening.

The scrip had plunged as much as 9.5 percent to Rs 153.50 in early trade, their lowest since February 29, 2016. DHFL shares fell 8 per cent on Tuesday following a media report that alleged financial misappropriation to the tune of Rs 31,000 crore by firm’s controlling shareholders.

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“Loans have been lent basis the guidelines laid out by National Housing Board, and there is no deviation from these norms,” company officials said.

The firm will be able to generate liquidity of Rs 40 billion in the coming few months, DHFL Chairman and Managing Director Kapil Wadhawan said on a conference call. He also said that the company plans to monetise life insurance business and has begun the process of selling down bulk portfolio. DHFL would soon announce plans to raise debt from overseas markets, he added.

The company also stated that it would explain in detail about loans to developers extended by the company and that these loans had been extended after proper due diligence.

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