DHFL shares locked at upper circuit for 8 days in a row; company trims losses in Q2

The stock has risen about 53 percent in the last eight trading sessions.

November 26, 2020 / 10:35 AM IST
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Dewan Housing Finance (DHFL) share price hit 5 percent upper circuit on BSE on November 26 after the company declared its Q2 results. The stock has been locked at the upper circuit for eight consecutive sessions now and has risen over 53 percent in the time frame.

The lender managed to trim its losses in Q2 FY21. It reported net loss at Rs 2,122.7 crore against loss of Rs 6,640.2 crore (YoY). Revenue of the company was up 4.7 percent at Rs 2,204.8 crore against Rs 2,106.7 crore (YoY).

Total assets of the company stand at Rs 83,638 crore at end of September 2020 compared to Rs 85,926.95 crore in the March quarter while total liabilities are at Rs 91,250.13 crore in September quarter as against Rs 91,326.19 crore in the preceding quarter, the company informed exchanges on Thursday.

The stock was trading at Rs 25.80, up Rs 1.20, or 4.88 percent at 10:01 hours. It has touched a 52-week high of Rs 25.80.

The scrip has touched an intraday high of Rs 25.80 and an intraday low of Rs 25.80. There were pending buy orders of 728,593 shares, with no sellers available.

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Shares of the company gained traction after media reports suggested that lenders to the company are seeking fresh bids and the company's committee of creditors (CoC) may vote on November 25 to decide on it.

Weeks ago, media reports quoted suitors for the non-banking finance company raised their offer price in the revised bids submitted for the company.

The Reserve Bank of India (RBI) had in November 2019 referred DHFL to the National Company Law Tribunal (NCLT) for insolvency proceedings. It was the first non-banking finance company (NBFC) to be taken to the bankruptcy court.

Lenders to DHFL are likely to call for another round of bids seeking higher value for its assets.

The bidders to DHFL include Adani Group, Piramal Enterprises, US-based Oaktree and Hong Kong-based SC Lowy had submitted 10-70 percent higher price for either a stake in the company or buying out some of its assets. Oaktree Capital has raised its bid price for the entire portfolio to Rs 33,000 crore from Rs 27,800 crore earlier.
Moneycontrol News
first published: Nov 26, 2020 10:35 am

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