Shares of Dewan Housing Finance Corporation Limited (DHFL) fell a day after surging over 32 per cent in Tuesday’s session after the debt-laden shadow bank DHFL on Tuesday said its creditors would not have to take any haircuts on principal payments under its resolution plan. In Wednesday’s session DHFL share price declined as much as 5.4 per cent to Rs. 52.40 from its previous close of Rs. 55.40 on the BSE. On the National Stock Exchange, DHFL share price declined 5.42 per cent to Rs. 52.35. DHFL shares were trading on a weak note owing to subdued trend in banking and financial services sector shares ahead of the Reserve Bank of India’s monetary policy decision due later in the day.
As part of the resolution plan, DHFL will also put a moratorium on repayments and seek funding from banks to start retail lending, the company said after a meeting of the special committee for resolution plan, the company said on Tuesday.
DHFL, the fourth-biggest housing finance company in India, has roughly Rs. 1 lakh crore of debt and is in the process of seeking lender approval on a restructuring designed to help it ride out a liquidity crunch and restart its lending business.
The shadow bank also said in a separate statement its auditor Deloitte, Haskins & Sells LLP had resigned, citing irregularities in DHFL’s financial statements for the year ending March 31.