This Article is From Jul 16, 2019

DHFL Shares Bounce Back From 11-Year Low

DHFL share price: Dewan Housing Finance shares jumped as much as 5.98% on Tuesday. DHFL shares have plunged sharply over the past few months.

DHFL Shares Bounce Back From 11-Year Low

DHFL share price today: Dewan Housing Finance jumped from a fresh 52-week high hit earlier in the session

DHFL or Dewan Housing Finance Limited shares jumped 6 per cent on Tuesday, a day after the housing finance company said it remains a "strong going entity". In a regulatory filing during market hours on Monday, Mumbai-based DHFL said that while the sectorial stress is well known for months, the company has "withstood intense pressure and continues to remain strong and solvent". The DHFL share price opened 4.95 per cent lower on the BSE on Tuesday, and hit a fresh 52-week low of Rs 44.45 apiece during the session - a level last seen in October 2008, before recovering all of the day's losses.

The housing finance company also said: "Some of the media have used select portions of our statement and created panic/ confusion especially regarding the statement on the going concern."

The company had said on Saturday that it was "undergoing substantial financial stress" and its ability to raise funds was "substantially impaired and the business has been brought to a standstill with there being minimal/virtually no disbursements".

"These developments may raise a significant doubt on the ability of the company to continue as a going concern," the company said in notes accompanying results for the fourth quarter ending March 31.

In late morning deals on Tuesday, the DHFL stock price climbed to Rs 51.40, marking a gain of 5.98 per cent over the previous close.

In its filing on Monday, DHFL also urged that its entire statement be read in entirety, so that the news is factual and not sensationalized.

Last Saturday, DHFL reported a net loss of Rs. 2,223 crore for the January-March period, as against a net profit of Rs. 134 crore for the corresponding period a year ago.

DHFL separately announced it had defaulted on interest payments worth Rs 28.58 crore on non-convertible debentures, due on July 6 and July 8.

At 2:42 pm, DHFL shares traded 3.20 per cent higher at Rs 50.05 apiece on the BSE, outperforming the broader Sensex index which was up 0.65 per cent.

DHFL also said it has met financial obligations to the tune of Rs 41,800 crore since September 2018.

The company also said that it is closely working with the stakeholders/creditors to ensure that there is a comprehensive resolution "without any haircut to the lenders".

DHFL shares have plunged sharply over the past few months amid concerns about the financial health of the non-banking financial companies (NBFC) sector.

As of Monday's closing price, DHFL shares have declined 80.55 per cent so far this year.