Special resolution plan rejuvenates DHFL

Dewan Housing Finance Corporation rocketed 32.06% to end at Rs 55.40 on the BSE after the company assured that its lenders will not have to face any haircuts under the proposed resolution plan.

The announcement was made during the market hours today, 6 August 2019.

Meanwhile, the S&P BSE Sensex was up by 277.01 points or 0.75% at 36,976.85.

On the BSE, 55.52 lakh shares were traded in the counter compared with average daily volumes of 33.4 lakh shares in the past two weeks. The stock had hit an intraday high of Rs 58.6 and an intraday low of Rs 40.95 which is also a 52-week low for the counter. The stock hit a 52-week high of Rs 690 on 3 September 2018.

As part of the resolution plan, which was cleared by the special committee of the DHFL board on Tuesday, DHFL will put a moratorium of repayments and will also seek funding from banks and the National Housing Board for re-starting retail lending.

DHFL, in a regulatory filing, said that the plan will also take steps to address the asset-liability mismatch.

Meanwhile, in a separate filing, DHFL said that Deloitte has resigned as its joint statutory auditor.

Dewan Housing Finance Corporation reported a net loss of Rs 2223.41 crore in Q4 March 2019 over a net profit of Rs 134.35 crore in Q4 March 2019. The company's total income increased 9.3% to Rs 3111.34 crore in Q4 March 2019 over Q4 March 2018.

Dewan Housing Finance Corporation provides customers with a vast array of home loan products including loans on homes, residential plots, construction, LAP or loan against property as also mortgage, non-residential and project loans.

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