Cobrapost allegations compound DHFL's woes in the wake of NBFC crisis

First victim of the NBFC crisis, the company's m-cap already down by 60% since September

Dewan Housing Finance Corporation (DHFL) was the first victim of the liquidity crisis triggered among non-banking finance companies (NBFCs) in September. Since then, its stock price has seen an erosion of 60 per cent. To top it, Tuesday’s charges made by media outlet Cobrapost, post-market hours, took DHFL’s stock price down by another five per cent.

While the company has indicated that the allegation of Rs 31,000 crores’ worth of financial fraud levied by Cobrapost is baseless, Suresh Ganapathy of Macquarie Capital says that the real issue is that of trust and lack of confidence. “The lending markets will freeze for