Shares of Dewan Housing Finance Corporation (DHFL) hit an over four-year low of Rs 139 apiece, down 14 per cent in the early morning trade on Thursday, on a media report that suggested that the ministry of corporate affairs will probe allegations against the housing finance company. The stock was trading at its lowest level since May 16, 2014.
In the past four trading days, the stock of DHFL tanked 33 per cent from the level of Rs 209 on the BSE, as compared to a 1 per cent decline in the S&P BSE Sensex. The market capitalisation of DHFL falls below Rs 5,000 crore mark at Rs 4,346 crore at 10:11 am; BSE data shows. A combined 28 million equity shares have changed hands on the NSE and BSE in the first hour of trading on the NSE and BSE.
In the past five months, the stock plunged 78 per cent against 8 per cent fall in the benchmark index, on concerns of overall credit growth due to the liquidity crisis. DHFL hit an all-time high of Rs 690 on September 3, 2018, on the BSE in the intra-day deal.
The Ministry of Corporate Affairs (MCA) has taken a “very serious note” of allegations of financial mismanagement against DHFL, a government source with direct knowledge of the matter told Reuters on Wednesday.
A government source said the ministry of corporate affairs had taken “very serious note” of the allegations would likely inspect the records of Dewan Housing and “further action” against the company and its directors cannot be ruled out.” Another source confirmed the plan to investigate the firm and the alleged shell companies. Both said they could not be named, citing government rules. Reuters contacted Dewan by phone and email for a response to the government move but there was no immediate response, added the report. CLICK HERE TO READ FULL REPORT
First Published: Thu, January 31 2019. 10:07 IST