Shares of Dewan Housing Finance Corporation Ltd (DHFL) Thursday plunged nearly 16 per cent, the fourth straight session of decline, after the corporate affairs ministry initiated inquiry into allegations of DHFL diverting Rs 31,000-crore loans.
DHFL stock tanked 15.93 per cent to close at Rs 135.85 on the BSE. Intra-day, it plummeted 19.80 per cent to Rs 129.60 -- its 52-week low.
On the NSE, shares crashed 15.82 per cent to close at Rs 135.90.
In four trading sessions, DHFL shares have fallen by 35 per cent, wiping out Rs 2,301.71 crore from the company's market valuation on the BSE.
The corporate affairs ministry has started inquiring into allegations of DHFL diverting loans and would seek more information from the housing finance firm, a senior official said.
DHFL is in the eye of a storm after news portal Cobrapost alleged that the company through layers of shell companies siphoned off Rs 31,000 crore out of the total bank loans of Rs 97,000 crore.
According to the expose, DHFL allegedly diverted the loans raised from state-owned banks but the company had termed the report as mischievous with a mala fide intention.
In a clarification to the exchanges, DHFL said it has not received any communication from the corporate affairs ministry "in relation to any probe against the company".
Housing finance company DHFL Friday reported a 36.7 per cent decline in net profit to Rs 313.60 crore for the third quarter ended December 2018.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)