DHFL shares tank nearly 16% as Icra, Crisil downgrade ratings

Shares of Dewan Housing Finance Corporation plummeted nearly 16 per cent Thursday as domestic rating agencies Icra and Crisil downgraded rating on Rs 850 crore worth of commercial paper of DHFL. The scrip tanked 15.86 per cent to close at Rs 93.90 on the BSE. During the day, it dived 18 per cent to Rs 91.50 -- its 52-week low level.

On the NSE, shares plunged 15.61 per cent to close at Rs 94.30. In terms of the traded volume, 65.85 lakh shares were traded on the BSE and over 6.49 crore units on the NSE during the day.

The company's market valuation also fell by Rs 555.2 crore to Rs 2,946.80 crore on the BSE. Equity markets were closed Wednesday for Id-Ul-Fitr.

Icra and Crisil Wednesday downgraded rating on Rs 850 crore worth of commercial paper of Dewan Housing Finance Corporation Ltd (DHFL) to 'default' from 'A4' due to the mortgage lender's deteriorating liquidity condition. The rating of the company, which defaulted on a debt repayment earlier this week, has been removed from watch with negative implications by both the rating agencies.

Crisil, in a note, said the downgrade to 'default' or 'D' reflects delays in debt servicing by DHFL on some of its non-convertible debentures (NCDs) because of inadequate liquidity. The payments were due on June 4, 2019. The NCDs are not rated by Crisil.

In a separate note, Icra said, "the rating revision factors in further deterioration in company's liquidity profile and delays in meeting scheduled debt obligation on June 04, 2019".

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