The stock of cash-strapped Dewan Housing Finance Corp Ltd (DHFL) plunged 29 per cent to close at ₹48.50 apiece on the BSE on Monday as the company said its ability to raise funds has been substantially impaired and the business has been brought to a standstill with there being minimal/virtually no disbursement. Intra-day, the DHFL stock hit a 52-week low of ₹46.70 apiece.

The company, in its notes to accounts to the fourth quarter results, also said these developments may raise a significant doubt on its ability to continue as a going-concern.

DHFL, which declared its fourth quarter results on Saturday, reported a huge loss of ₹2,223 crore against a net profit of ₹134 crore in the year-ago period.

The company said its Audit Committee has directed the management to place the annual audited Ind AS standalone and consolidated financial results for the fourth quarter/year ended March 31, 2019 under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with the ioint statutory auditors report on or before July 22, 2019.

The date of the board meeting to consider and approve the audited Ind AS standalone and consolidated financial results for the fourth quarter/year ended March 31, 2019 will be accordingly intimated to stock exchanges.

DHFL, in a statement, said: “We are closely working with the stakeholders/creditors to ensure that there is a comprehensive resolution, without any haircut to the lenders, as has been speculated by few sections of the media.” Reiterating what it said in the notes to accounts, the company said it is in an advanced stage of submitting its resolution process under the inter-creditor agreement (ICA) as entered into by banks.

The ICA will examine and firm up the terms of the resolution process by July 25, 2019 and make it operational before September 25, 2019, it added.

Resources raised via debt securities stood at ₹45,379 crore (₹35,814 crore as of March-end 2018); borrowings (other than debt securities) stood at ₹39,551 crore (₹44,964 crore); and deposits stood at ₹6,588 crore (₹9,652 crore). The company said the process of identifying a strategic investor is nearing completion which will bring in an equity investor to bolster its capital base.

Related Topics