You are here: Home » Markets » News
Business Standard

DHFL falls 3% after Brickwork's ratings downgrade

The downgrade is on account of limited progress in building up liquidity, selling/exiting riskier construction finance loans

SI Reporter  |  Mumbai 

DHFL
A woman walks past a signboard of DHFL outside its office on the outskirts of Mumbai Photo: reuters

Shares of (DHFL) slumped 3 per cent to Rs 167 on the on Friday in intra-day trade after rating agency downgraded on the company's NCDs and subordinated debt instrument.

The downgrade is on account of limited progress in building up liquidity, selling/ exiting riskier construction finance loans, said in a regulatory filing on Thursday after market hours.

In the past two months, the stock has rallied 65 per cent from Rs 105 on February 11, as compared to a 6 per cent rise in the S&P till Thursday.

During the investors' call held on February 4, the chairman and managing director of had mentioned that there is an intent to bring in strategic investor(s) in the company. The board of directors had constituted a special committee to evaluate such interest.

"However, no further discussions or decision in relation to the same have been made by the board of directors of the company. In case any such decision is taken by the board, we will intimate the Stock Exchanges as per the provisions of SEBI Listing Regulations," said in a clarification on media reports that Piramal Group and Baring Private Equity (PE) were in talks to acquire majority stake in the company.

Despite a sharp run-up in the past two months, the stock has fallen 75 per cent from its 52-week high level of Rs 690, touched on September 3, 2018, on liquidity crises.

At 12:22 pm, DHFL was trading 1 per cent lower at Rs 171 on the BSE, as compared to a 0.08 per cent decline in the S&P A combined 13.5 million equity shares changed hands on the counter on the BSE and so far.

First Published: Fri, April 12 2019. 12:25 IST
RECOMMENDED FOR YOU