DHFL falls 3% after Brickwork's ratings downgrade

Shares of Dewan Housing Finance Limited (DHFL) slumped 3 per cent to Rs 167 on the BSE on Friday in intra-day trade after rating agency Brickwork downgraded ratings on the company's NCDs and subordinated debt instrument.

The downgrade is on account of limited progress in building up liquidity, selling/ exiting riskier construction finance loans, DHFL said in a regulatory filing on Thursday after market hours.

In the past two months, the stock has rallied 65 per cent from Rs 105 on February 11, as compared to a 6 per cent rise in the S&P BSE Sensex till Thursday.

During the investors' call held on February 4, the chairman and managing director of DHFL had mentioned that there is an intent to bring in strategic investor(s) in the company. The board of directors had constituted a special committee to evaluate such interest.

"However, no further discussions or decision in relation to the same have been made by the board of directors of the company. In case any such decision is taken by the board, we will intimate the Stock Exchanges as per the provisions of SEBI Listing Regulations," DHFL said in a clarification on media reports that Piramal Group and Baring Private Equity (PE) were in talks to acquire majority stake in the company.

Despite a sharp run-up in the past two months, the stock has fallen 75 per cent from its 52-week high level of Rs 690, touched on September 3, 2018, on liquidity crises.

At 12:22 pm, DHFL was trading 1 per cent lower at Rs 171 on the BSE, as compared to a 0.08 per cent decline in the S&P BSE Sensex. A combined 13.5 million equity shares changed hands on the counter on the BSE and NSE so far.