DHFL jumps on buzz of debt resolution plan

The stock jumped 6.75% to Rs 49 on reports that it has arrived at a 3-level resolution plan that includes conversion of debt to equity and issuance of nonconvertible debentures.

These steps will reportedly give creditors majority stake in the embattled housing finance company and help resume stalled credit lines. The Reserve Bank of India (RBI), however, must approve the plan since DHFL is a financial institution, added reports.

Meanwhile, S&P BSE Sensex was up 84.58 points or 0.23% at 37,434.91.

On BSE, 35.94 lakh shares were traded in Dewan Housing Finance Corporation counter, compared to a 2-week average of 30.45 lakh shares. The stock hit an intraday high of Rs 52.15 and an intraday low of Rs 46.55.

It hit a 52-week high of Rs 690 on 3 September 2018 and a 52-week low of Rs 40.85 on 5 August 2019.

DHFL will release its Q1 earnings by 14 September 2019. DHFL reported a net loss of Rs 2,223.41 crore in Q4 March 2019 compared with net profit of Rs 134.35 crore in Q4 March 2018. Its total income rose 9.3% to Rs 3,111.34 crore in Q4 March 2019 over Q4 March 2018.

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