DHFL shrugs off CEO Harshil Mehta's resignation; jumps 18% from day's low

The stock moved higher by 11 per cent to Rs 123, bouncing back 18 per cent from intra-day low of Rs 104 on the BSE.

Shares of Dewan Housing Finance Corporation Limited (DHFL) have moved higher by 11 per cent to Rs 123 apiece, bouncing back 18 per cent from their intra-day low and erasing their entire losses on the BSE.

The stock opened 6 per cent lower at Rs 105 after DHFL’s Joint Managing Director (MD) and Chief Executive Officer (CEO) Harshil Mehta resigned on Wednesday with immediate effect.

However, Harhil Mehta would continue to be associated with the company and shall hold the designation of Executive President- Retail Business with effect from 14th February 2019, DHFL said in a regulatory filing.

DHFL also informed of Sunjoy Joshi's appointment as an Independent Director and Srinath Sridharan as a Non-Executive Director of the company. However, it remains subject to receipt of requisite approvals from the regulatory authorities, the company added.
 

The Wadhawans, promoters of DHFL are planning to rope in a strategic investor to infuse fresh equity into the company.

Earlier this month, in a analyst call, Kapil Wadhawan, chairman, Wadhwan Global Capital Ltd (WCG) said there are already active discussions about roping in strategic investors. The deal is likely to be finalised in 90 days. WCG is a promoter holding company of the group.

The promoter holding will be diluted in the expanded equity of DHFL. The talks for getting strategic investor have gathered pace due to hostile market conditions after the so-called Cobrapost expose. CLICK HERE TO READ FULL REPORT

At 01:29 pm; DHFL was trading 9 per cent higher at Rs 121 on the BSE in an otherwise weak market. The S&P BSE Sensex was down 0.39 per cent or 140 points at 35,894. A combined 32.73 million equity shares changed hands on the BSE and NSE, the exchange data shows.