DHFL hits over 10-year low after CDSL freezes promoters' shareholding

Shares of Dewan Housing Finance Corporation (DHFL) hit an over 10-year low and were locked in the lower circuit limit of 10 per cent at Rs 26.05 on the BSE on Wednesday after PTI report suggested that Central Depository Services (CDSL) has frozen the company’s promoter shareholding as the company has not filed results for the first quarter.

The stock of the housing finance company was trading at its lowest level since February 2009.

However, debt ridden DHFL on Monday after market hours said the board of directors of the company is scheduled to meet on October 17, to consider and approve the un-audited financial results for the first quarter ended June 30, 2019.

The delay in submission of financial results is on account of resignation of the statutory auditors and reasonable time required by the new statutory auditors to review the financial results.

“Any action taken by the stock exchanges or depositories as a result of delay in submission of the above financial results by the company is purely procedural in nature and does not materially impact the company or the promoters,” DHFL said in a regulatory filing.

DHFL defaulted on multiple commitments after it was in trouble due to the non banking financial companies (NBFC) crisis which started after the fallout of IL&FS.

In the past one month, the share price of DHFL has tanked 47 per cent, after the company reported a fresh case of default amounting to Rs 196.65 crore on bond repayment obligation. In comparison, the S&P BSE Sensex has gained 2 per cent during the same period.

Till 12:54 pm, a combined 4.69 million equity shares changed hands and there were pending sell orders for 483,007 shares on the NSE and BSE.