DHFL stock rises sharply as CEO resigns amid series of allegations

Shares of DHFL bounced back sharply Thursday after early losses and closed the day nearly 16 per cent higher, a day after the company announced the resignation of its CEO Harshil Mehta. Dewan Housing Finance Corporation Limited stock zoomed 15.69 per cent to close at Rs 127.90 on the BSE. Intra-day, it cracked 5.92 per cent to Rs 104.

On the NSE, the scrip erased early losses and closed at Rs 127.70, a gain of 14.83 per cent. Intra-day, it dropped 6.51 per cent to Rs 103.95. On the traded volume front, 59.76 lakh shares were traded on the BSE and over 5 crore units on the NSE.

"DHFL management commentary underplayed the resignation of the CEO by reallocating him to a retail-focused portfolio but the bounce was imminent as the stock was deeply butchered," said Umesh Mehta, head of research, Samco Securities Ltd. "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 Wednesday. Besides, the board has recommended the appointment of Sunjoy Joshi as an independent director and, Srinath Sridharan as a non-executive director.