The bearish trend in Dewan Housing Finance Corporation's (DHFL) share is unlikely to reverse anytime soon amid a spate of negative news flow surrounding the mortgage lender. The non-banking financial company has been facing a liquidity crunch since last September, when infrastructure financing firm IL&FS defaulted on its payment obligations.
DHFL shares have corrected by nearly 81.5 percent in the last one year, severely under-performing the wider financial sector which has returned over 7 percent despite liquidity crunch.
In the last one month alone, DHFL shares have shed almost 21 percent, while the sector return has been measured at a little over 10 percent.
On Thursday, DHFL could come under pressure and see fresh round of selling as reports indicate that the NBFC likely defaulted on payment of Rs 1,150 crore non-convertible debentures (NCDs) on Tuesday.
DHFL had raised about Rs 11,000 crore through public issue of bonds last June. These NCDs offered investors annual yields of 8.90 percent to 9.10 percent across maturities. Pune-based Catalyst Trusteeship was the custodian for the bond sale.
"The company is taking all steps necessary and shall ensure that the payment fallen due by way of interest is paid within the above-mentioned Cure Period of seven working days. Hence this is a delay & NOT default. The company is committed towards ensuring repayment of all its obligations within the stimulated timelines," a CNBCTV18.com report
quoted DHFL as saying in a statement.
The development has come amid reports of Aion Capital Partners, a joint venture between global buyout firm Apollo Global and ICICI Venture, looking to buy a majority stake in DHFL.
In March, DHFL's Managing Director and Chairman Kapil Wadhawan had indicated that the company was engaged with large potential entities to bring in a strategic partner on board.
DHFL shares quoted at Rs 111.80 at Tuesday's close, down by 1.24 percent, while the Nifty50 closed 67 points lower at 12,021.
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