DHFL closed higher by 14.84% on NSE after Mehta's clarification on resignation

Updated : February 14, 2019 04:33 PM IST

DHFL shares dived as much as 5.9 percent to Rs 104 per share in the opening trade on the BSE

Mehta would continue to be associated with the company as Executive President -Retail Business

Dewan Housing Finance Limited (DHFL) shares on Thursday erased losses and surged over 14.84 percent to Rs 127.70 per share as the closing price on NSE after the fresh development that the resignation was in-line to get a new strategic partner within the given time frame.

Harshil Mehta had also made an announcement that the new retail model would be around ‘Originate and sell’ model and that needed a sharp focus to build the retail business around that model. So, the resignation was basically to bring a sharper focus around the ‘originate & sell’ model and as well to get a strategic partner.

In the opening trade, the stock fell nearly 6% after the company's chief executive officer and joint managing director Harshil Mehta resigned with immediate effect.

"However, he would continue to be associated with the company and shall hold the designation of Executive President -Retail Business with effect from February 14, 2019," DHFL informed the stock exchanges on Wednesday.

Besides, the board has recommended the appointment of Sunjoy Joshi as an Independent Director and Srinath Sridharan as a Non-Executive Director.

Earlier, investigative news portal Cobrapost accused DHFL of siphoning off Rs 31,000 crore of loans to 'dubious' companies.

The allegations by Cobrapost, founded in 2003 by Aniruddha Bahal of Tehelka, are based on Vikas Shekhar's complaint who is not a shareholder nor a borrower. DHFL's management denied Cobrapost's allegations, calling them 'frivolous.'

Published : February 14, 2019 09:28 AM IST

DHFL closed higher by 14.84% on NSE after Mehta's clarification on resignation

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