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    DHFL tanks 50%, loses over Rs 10,000 crore in market cap

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    DHFL tanks 50%, loses over Rs 10,000 crore in market cap

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    The stock had opened at a high of Rs 615.15, after its last close of Rs 610.55.

    Dewan Housing Finance Corporation (DHFL) on Friday lost more than 50 percent in trade with the stock value hitting a 19-month low of Rs 274.75, as investors massively sold the NBFC share on concerns of liquidity default.
    The company lost more than Rs 10,000 crore in market capitalisation.
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    The stock, though recovered slightly later, was still down by 36.6 percent, trading at Rs 387.10, losing Rs 223.45 in value. The stock had opened at a high of Rs 615.15, after its last close of Rs 610.55.
    A fund house reportedly sold a large quantum of commercial papers of DHFL at a steep discount, stoking fears of a liquidity crunch.
    Speaking to CNBC-TV18, Kapil Wadhawan, chief managing director of DHFL, expressed his concerns over the fall in stock and clarified that there was no default and that the firm was very much in a sound position.
    "This has come as a big surprise and a shock to me ... we are extremely conservative in maintenance of liquidity, there is no default what so ever. The repayment are not even due yet and there is ample liquidity lying with us in system to take care of interest as well as the principal pay-outs over the next couple of quarters. So, all this what we are seeing is a panic driven, panic stricken market reaction," said Wadhawan.
    Wadhawan said the firm has liquidity of close to Rs 10,000 crore in addition to monthly collections.
    "My total liability position, say till March 31st is just Rs 4,800 crore. Obviously, there is some amount of CP(commercial paper) that is also there in the system but it is not a very big amount. At the same time there is close to Rs 10,000 crore of liquidity available with us in the system other than the collections that we accrue on a monthly basis. Those collections are anyway between Rs 2,500-3,500 crore a month, so from that perspective we are extremely comfortable," he added.
    Apart from DHFL, Indiabulls Housing Finance, M&M Finance and Bajaj Finance plunged more than 24 percent, 9.5 percent and 7.53 percent, respectively.
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