Dewan Housing Finance Corporation (DHFL) on Tuesday said it will not make any interest or principal payment to lenders as well as bondholders as the company is under resolution process.
Enforcement Directorate asked asked DHFL promoters Wadhawans to appear on March 17, while Naresh Goyal of Jet Airways and Subhash Chandra of Essel Group will appear on March 18.
Sources told CNBC-TV18 that the Adani Group could be a strong contender to take over the non-banking finance company.
DHFL paid Rs 75 crore in June and the remaining amount was paid on September 7.
The company proposed steps or measures towards addressing aligning asset-liability mismatch.
The stock has lost nearly 90 percent of its value in the last one year
DHFL posted a net loss on its fair value change at Rs 2,550.17 crore for the quarter and Rs 2,458.4 crore for full year.
Potential private equity investors may have met lenders and sought comfort on continued funding.
Recently, the company completed its stake sale in Aadhar Housing Finance to an entity backed by Blackstone Group LP
The Reserve Bank had cut its key policy rate on June 6 by 25 bps, its third such move in successive policy reviews in 2019, to a nine-year low to help spur sagging growth.
Experts speaking to Moneycontrol advise selling the stock as well as staying away from such companies unless some big company buys it
The mortgage lender's liquidity dropped to Rs 2,775 crore as of end-April.
The stock gained more than 16 percent in last one month, though in one year it lost 71 percent.
ICRA said it revised the short-term rating outstanding for the Rs 8,000-crore commercial paper (CP) programme of DHFL to A2+ from A1+. As on date, DHFL has CP outstanding of Rs 1,525 crore
"However, he would continue to be associated with the company and shall hold the designation of Executive President -Retail Business with effect from February 14, 2019," DHFL said in a regulatory filing on stock exchanges.
Brickwork has downgraded Rs 12,000-crore fixed deposits to FAA+ from FAAA.
Cholamandalam Securities is bullish on Dewan Housing Finance Corporation has recommended buy rating on the stock with a target price of Rs 286 in its research report dated November 28, 2018.
Indiabulls Housing Finance, Dewan Housing, M&M Financial, Shriram Transport and Bajaj Finance were top losers among NBFCs, falling 5-9 percent.
Other finance companies Bajaj Finance, Bajaj Finserv and Shriram Transport Finance Corporation are also under pressure.
The company proposes to issue secured redeemable non-convertible debentures amounting to Rs 1,000 crore plus a greenshoe option of up to Rs 1,000 crore on private placement basis, the company said in a regulatory filing.
Jhunjhunwala Rakesh Radheshyam has sold 13,34,736 equity shares during the quarter, bringing the stake down to 86,65,264 from 1,00,00,000 earlier, as of June 2018.