DHFL shares fall 8% after Icra downgrades commercial paper programme

Shares of Dewan Housing Finance Ltd (DHFL) fell as much as 8 per cent on Tuesday after credit rating agency Icra lowered the rating of the housing finance company’s commercial papers (CPs). The scrip recouped some of the losses, closing 4.3 per cent lower at Rs 131.

Icra downgraded DHFL’s Rs 8,000-crore CPs from ‘A1 plus’ to ‘A2 plus’, citing impact on the company’s ability to generate fresh business due to challenges in raising funds from banks and debt markets.

The rating cut could lead to mark-to-market losses for debt schemes, which have Rs 1,000 crore exposure to DHFL’s CPs.