DHFL freezes at 5% lower circuit for second straight day on profit booking

Shares of Dewan Housing Finance Corporation (DHFL) were locked in the lower circuit for second straight day, down 5 per cent at Rs 37.70, on the BSE on Tuesday amid profit booking after media reports suggested that the US-based asset management firm Oaktree Capital has emerged as the highest bidder in a revised round of bidding for the troubled mortgage lender.

The stock is now down 14 per cent from its 52-week high level of Rs 43 touched in Monday's intra-day trade. Prior to that, market price of DHFL had more-than-doubled and had zoomed 155 per cent from a level of Rs 16.85 touched on November 13 on the BSE.

Till 02:45 pm, around 860,000 equity shares had changed hands on the NSE and BSE and there were pending sell orders for 8.9 million shares, the exchange data show. In comparison, the S&P BSE Sensex was trading 0.02 per cent lower at 46,244 points.

Oaktree Capital has placed bid worth Rs 32,700 crore, followed by Piramal Group's bid at Rs 32,350 crore. Adani Group now stands as the third highest bidder with offer of Rs 29,860 crore to buy the entire portfolio of the mortgage financier.

According to a Business Standard report, US-based asset management fund Oaktree Capital's offer includes Rs 11,646 crore in upfront cash and deferred payments to the lenders. The offer also holds back Rs 1,500 crore, which will be given to banks only after DHFL’s insurance venture, is sold and all tax liabilities from the sale are met, the report said. CLICK HERE TO READ FULL REPORT