DHFL defers March 2019 quarter results; stock tanks 13%

Dewan Housing Finance Corporation Limited (DHFL) shares dipped 13 per cent to Rs 70.70 on the BSE during intra-day trade on Friday, after the company deferred the release of its March 2019 quarter (Q4) results which were schedueled to be announced on Saturday (June 29) to July 13.

The stock closed the day 11.75 per cent lower at Rs 72.10 as compared to a 0.48 per cent dip in the benchmark S&P BSE Sensex.

In a regulatory filing, the company cited "certain unforeseen operational engagements including nonavailability of a few directors to ensure participation of all the members of the Audit Committee as well as the Board" for deferring the results. READ THE RELEASE HERE

Earlier on Tuesday, the company said it has defaulted on unsecured commercial paper (CP) of Rs 225 crore. Within 10 months of starting wealth management business WGC Wealth, Wadhawans, the promoters of beleaguered Dewan Housing Finance Corporation (DHFL), have exited the venture by selling stake to employees. The unit was renamed Validus Wealth after the transaction.

Facing pressure of meeting repayment obligations for housing finance unit DHFL, Wadhwans have been divesting group businesses. They have sold Aadhar Housing Finance to PE firm Blackstone. They have also sold education finance subsidiary, Avanse Financial Services, to an affiliate of the Warburg Pincus Group. They are also in process of selling stake in life insurance firm and mutual funds. READ MORE HERE

Lenders to DHFL will meet early next month to hammer out a rescue package, which will include the reworking of loan payments, fresh working capital support, roping in a financial investor, and the promoters ceding control.