DHFL, Indiabulls Housing, RCap, RInfra tank over 50% in one month

Shares of Dewan Housing Finance Corporation (DHFL), Indiabulls Housing Finance, Reliance Capital (RCap), Reliance Infrastructure (RInfra), Indiabulls Ventures and Coffee Day Enterprises tanked an over 50 per cent in the past one month on the back of negative news flow.

State Trading Corporation of India (STC India), Talwalkars Healthclubs, Housing Development & Infrastructure (HDIL), Sintex Plastics Technologies, Sintex Industries and Unitech are among 13 stocks from the S&P BSE Allcap index, that have seen their market value declining more-than-half during the month.

In the past one month, the S&P BSE Sensex and S&P BSE Midcap index were up 2 per cent and 4 per cent, respectively. On the other hand, the S&P BSE Smallcap index was down 2 per cent during the period.

DHFL was locked in the lower circuit of 5 per cent at Rs 20.20 on Wednesday after rating agency ICRA downgraded the company’s pooled loans to default. The stock of housing finance company has plunged 61 per cent in the last one month and 92 per cent thus far in the calendar year 2019 (CY19).

The rating downgrades take into account the inability of DHFL to fund the Collection & Payout Account (C&P Account) maintained for the respective transaction/trust. For three transactions, viz. D.A. Jan-12, D.A. Feb-12, D.A. Feb-12 II, the cash collateral (CC) lien marked in favour of the Trustee could not be dipped in a timely manner owing to operational reasons, thereby leading to a default on the purchaser payouts.

“The rating actions also factor in the ongoing legal proceedings against DHFL, which might impact its ability to transfer the pool collections into the respective C&P Account under the rated transactions in a timely manner,” ICRA said in a rating rationale.

Indiabulls Housing Finance slipped 9 per cent to Rs 172, extending its past two days' 10 per cent decline after Moody's Investors Service on Monday downgraded the corporate family rating (CFR) and the foreign-currency senior secured rating of the housing finance company to B2 from Ba2, citing funding challenges for the company. The stock was trading close to its all-time low value of Rs 166 touched on September 2013.

Meanwhile, the company on Monday after market hours said, that it will consult Sebi about its eligibility to buy back shares given the regulations on the ideal capital structure. The board noted the adverse impact on the share price following the circulation of rumours, fake news and unfounded allegations in social media, and the reproduction of these allegations in a PIL filed against the company concerning loans to leading developers extended in the normal course of the company's business as a housing finance company.

RCap hit an all-time low of Rs 13.80 today in intra-day deal on the BSE. The stock of Anil Ambani-led Reliance Group Company has slipped 62 per cent in the last one month.

On Friday, October 11, 2019, RCap said the company agreed to sell its entire stake in subsidiary company Reliance Securities. The management team of Reliance Securities group has entered into a binding agreement to buy out the broking and distribution business from Reliance Capital, subject to regulatory and other customary approvals, the company said in a media statement.

Reliance Securities business includes retail and institutional broking, third-party distribution, proprietary trading and structured products.

Reliance Capital spokesperson said ‘This management buyout transaction is part of ongoing asset monetisation plan and intent to focus primarily on life insurance and general insurance business as a way forward’. 

S T C 46.00 133.60 -65.6
TALWALKARS HEAL. 3.48 9.57 -63.6
H D I L 2.35 6.39 -63.2
RELIANCE CAPITAL 14.10 36.80 -61.7
DEWAN HSG. FIN. 20.20 51.80 -61.0
SINTEX PLASTICS 2.18 5.35 -59.3
INDIABULLS HOUS. 179.00 435.20 -58.9
ZEE MEDIA 5.08 11.70 -56.6
SINTEX INDS. 1.14 2.57 -55.6
COFFEE DAY ENTER 34.30 74.30 -53.8
RELIANCE INFRA. 18.80 40.05 -53.1
INDIABULLS VENT. 82.00 171.50 -52.2
UNITECH 0.38 0.79 -51.9
MT EDUCARE 14.05 27.30 -48.5
LAK. VILAS BANK 20.95 40.65 -48.5
ITD CEM 36.45 69.15 -47.3
RAMKY INFRA 39.55 73.90 -46.5
MERCATOR 0.80 1.47 -45.6
RELIANCE HOME 3.11 5.66 -45.1
JAIN IRRIGATION 12.95 23.40 -44.7

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