Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
2-min read

DHFL Shares Recover Nearly 10% as Company Starts Clearing Debt Obligations

DHFL chairman Kapil Wadhawan had affirmed that the company is not facing any solvency issues and is well on track with the NCDs payout.

Trending Desk

Updated:June 10, 2019, 11:00 AM IST
facebookTwitterskypewhatsapp
DHFL Shares Recover Nearly 10% as Company Starts Clearing Debt Obligations
File photo of DHFL logo (Image : Reuters).

New Delhi: Dewan Housing Finance Corp. Ltd (DHFL) shares recovered as much as 10% in early trade on Monday on reports that the company managed to make partial payments to investors of non-convertible debentures (NCDs).

A media report said that Reliance Nippon Life AMC (RNAM) has received some payment from DHFL Securities and RNAM will pay proportionately to all the unitholders of fixed maturity plans (FMPs) maturing on 6 June in the next two working days.

Another media report said DHFL was confident of honouring all its repayment obligations by the close of 13 June. In an interview to CNBC TV18, DHFL chairman Kapil Wadhawan affirmed that the company is not facing any solvency issues and is well on track with the NCDs payout. “Investors will be worried about their investment but...we are a solvent company, we have cash that keeps coming into the system... We will make sure that every penny is paid for,” said Wadhawan.

According to DHFL chairman, terming the present crisis as a solvency issue is a misnomer. “I have heard some market experts talk about solvency issues, about DHFL being tagged with some other companies which have had similar problems from different sectors. We are a financial institution, we have underlying assets which keep on giving us cash flow even today. Now if you abruptly stop the lending activity for a large institution like us with more than Rs 1.25 lakh crore worth assets under management and expect us to start paying down the liabilities of all creditors, even a bank today would not survive,” Wadhawan told CNBC-TV18.

On 4 June, DHFL was to pay interest and principal payments to the tune of Rs 1,160 crore to bondholders. The company delayed the payment and asked for a seven-day grace period. Consequently, CRISIL, ICRA and CARE Ratings downgraded their rating on DHFL’s Commercial Paper (CP)/Non-Convertible Debentures (NCD) to “D”, based on delay in debt servicing due to inadequate liquidity, modest capital position and modest earnings.

DHFL responded strongly in a statement by saying, “The action by the rating agencies is extremely surprising as the company has been making and continues to make substantial efforts in ensuring no defaults on any bonds, repayment of its financial obligations. These actions are unwarranted and the company is seeking clarification on the rationale that predicts DHFL’s inability to service pay‐outs on the due dates. Such a speculative rating rationale is not adequate.”

At 10:08am, DHFL shares were trading at Rs 87.40 apiece, up 4.9%, on BSE.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Karan Anand
Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 51.40 8.44
Reliance 1,416.35 1.42
Indiabulls Hsg 231.20 16.80
Zee Entertain 250.20 -5.39
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
HDFC AMC 2,882.20 6.11
Yes Bank 51.40 8.44
Indiabulls Hsg 231.50 17.42
Reliance 1,415.30 1.37
IRCTC 779.20 7.57
Top Gainers
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.28
Adani Ports 421.70 3.07
Grasim 746.50 3.03
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.31
Maruti Suzuki 7,318.15 2.74
Power Grid Corp 202.55 2.45
NTPC 121.00 2.02
Top Losers
Company Price Change %Gain
Zee Entertain 250.20 -5.39
Tata Motors 136.85 -1.90
Eicher Motors 20,275.90 -1.05
Bajaj Auto 3,087.05 -0.79
Hindalco 187.40 -0.74
Company Price Change %Gain
Tata Motors 136.70 -1.05
Bajaj Auto 3,087.75 -0.73
Bharti Airtel 383.25 -0.65
ICICI Bank 437.75 -0.64
Axis Bank 709.20 -0.19

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results