"After announcing the sale of Aadhar Housing to Blackstone, the company is also seeking to sell units including Avanse Financial and has appointed banks to identify a partner to purchase the life insurance business", DHFL Chairman Kapil Wadhawan said in a conference call with investors.
Earlier, in the morning trade, shares of DHFL hit a six-year low of Rs 97, down 13 per cent on BSE after the rating agency CARE has downgraded ratings for the company’s bonds, loans on moderation in financial flexibility for the housing finance company.
The stock of housing finance company hit its lowest level December 23, 2013, on BSE. In the past six trading days, it tanked 54 per cent form level of Rs 209 on January 25, 2019. In comparison, the S&P BSE Sensex was up 1 per cent during the same period.
CARE has cut ratings from “AAA” to “AA+” for debentures, loans and deposits. Rating for commercial paper (“A1+) has kept under watch with developing implications.
The revision in the long-term ratings takes into account moderation in financial flexibility of DHFL as evidenced by a sharp reduction in its share price and significant rise in bond spreads. While stock prices and credit spreads were negatively affected by NBFCs and HFCs post-September 2018, recent media news
related to DHFL has further impacted market sentiment. DHFL’s ability to raise resources at competitive rates would be crucial for its profitability and long-term growth prospects going forward, CARE said.
CARE has placed the ratings under credit watch with developing implications in light of recent events and will continue to monitor the situation, it added. CLICK HERE TO READ FULL REPORT
At 12:05 pm, DHFL was trading 7 per cent higher at Rs 120 on BSE, as compared to a 0.28 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped 1.5 times with a combined 88 million equity shares changed hands on the NSE and BSE so far.