DHFL stock tanks 10%, hits lower circuit; experts warn sell now, stay away, relisting prospects unclear

Traders shopping for shares of Dewan Housing Finance Ltd (DHFL) may very well be latching onto a pipe dream which can by no means fructify.

Traders shopping for shares of Dewan Housing Finance Corporation Ltd (DHFL) may very well be latching onto a pipe dream which can by no means fructify. The soon-to-be delisted firm was in excessive demand on the inventory exchanges on Tuesday, with 44 lakh shares exchanging hand on the BSE and a whopping 1.46 crore on the NSE. As we speak the inventory hit the decrease circuit to commerce at Rs 20.60 apiece. Nevertheless, The sharp drop within the shares of the soon-to-be delisted firm comes after the inventory soared 31% within the first 8 days of this month. 

The heavy buying and selling and supply volumes in DHFL inventory yesterday confirmed that buyers had been nonetheless shopping for the inventory, a few of them hoping to extract some worth when the inventory re-lists. Nevertheless, this can be removed from the reality with no future guarantees of re-listing made to shareholders. The worth of DHFL shares with current shareholders has primarily turned to trash, Vishal Wagh, Head of Analysis, Bonanza Portfolio, instructed Monetary Specific On-line. “The clever transfer for buyers is to promote their present holdings and spend money on extra profitable choices,” he added. Vishal Wagh additional added that the relisting of DHFL shares stays a distant dream which can or is probably not achieved.

“There may be uncertainty in regards to the future prospects of DHFL. Traders ought to take cash out earlier than delisting and search for alternatives the place there’s a certainty,” Vishal Wagh added.  India’s largest stockbroker, Zerodha has launched a nudge characteristic on its platform that informs buyers of the opportunity of invested worth being extinguished as a part of the acquisition of the corporate.

On Monday, DHFL mentioned in an alternate submitting that Mumbai bench of the Nationwide Firm Legislation Tribunal (NCLT) accepted Piramal Capital & Housing Finance’s insolvency decision plan with sure situations. “As a part of the Decision Plan, the fairness shares of the corporate are proposed to be delisted,” the corporate mentioned within the BSE submitting. Piramal Capital & Housing Finance will shell out Rs 37,250-crore for DHFL. It will translate to 40% restoration for monetary collectors on the full declare of Rs 87,082 crore. State Bank of India is a lead creditor to DHFL with admitted claims of Rs 7,170 crore. DHFL had gone bankrupt with greater than Rs 90,000 crore in debt to varied lenders, together with banks, mutual funds and particular person buyers who stored mounted deposits with the corporate.

(The inventory suggestions on this story are by the respective analysis analysts and brokerage companies. Monetary Specific On-line doesn’t bear any duty for his or her funding recommendation. Capital markets investments are topic to guidelines and laws. Please seek the advice of your funding advisor earlier than investing.)