EBM News
EBM News

DHFL calls for meeting over delayed Q1 results

MUMBAI: Hours after reports of depository CSDL freezing DHFL promoters’ shareholding due to a delay in declaring its first-quarter results, its Board of Directors is set to discuss the issue.

Dewan Housing Finance Corporation Ltd (DHFL) informed the stock exchanges on Monday that the board of directors of the firm would meet on October 17 to consider approving its un-audited Q1 results.

DHFL was hit hard since the NBFC crisis unfolded in September last year and has been in the process of debt resolution with lenders. It had also sold many of its subsidiaries to raise fund to repay debt.

Promoters hold around 37.30 per cent stake in the company through Wadhawan Global Capital Ltd.

DHFL’s fourth quarter results for the last financial year was also published after much delay. Auditors Chaturvedi & Shah LLP and Deloitte Haskins & Sells LLP had put out several qualifications and disclaimers.

The June quarter results were delayed as the company was in the process of appointing new auditors, which was approved by the shareholders on September 28. Moreover, DHFL stock fell 7.5 per cent to close at Rs 28.90 on BSE on Monday.

Share prices of other NBFC stocks took a beating too, and Edelweiss Financial Services fell over 7 per cent on the back of Friday’s credit rating downgrade by CRISIL. Edelweiss stock too closed 7 per cent lower at Rs 78.50 on BSE.

While re-affirming ratings on the commercial paper and short-term borrowings, CRISIL said it has downgraded long-term debt instruments of Edelweiss group entities by one notch downwards with a ‘Stable’ outlook.

It noted the interest from debt investors in the sector has reduced in recently leading to funding access for NBFCs.

Though, Edelweiss has been raising resources on an ongoing basis since September 2018, the overall fundraising remains significantly below September 2018 level.