NEW DELHI: Shares of Dewan Housing Finance Corporation (DHFL) plunged as much as 15 per cent to Rs 94.90 in early deals on Thursday after many rating agencies downgraded the commercial papers (CP) issued by the debt-laden company to default.Rating agencies Crisil, CARE and ICRA have downgraded commercial papers (CP) issued by DHFL to default or ‘D’ category after the company missed an interest payment on its non-convertible debentures (NCDs) on Tuesday.
The company missed its interest payment deadline on a set of outstanding bonds, but the embattled company is in talks with financiers to help meet its Rs 1,000-crore-plus obligation within the seven-day grace period and prevent a default.
Crisil and ICRA cited the company’s stretched liquidity position as the main reason for the downgrade.
In a separate release, ICRA said while CPs are not rated by ICRA, given the stretched liquidity profile and limited visibility on fresh funding, the company is unlikely to be able to service its debt obligation with regard to the commercial paper programme in a timely manner.
Mutual fund investors holding debt of DHFL suffered one of the worst single-day losses ever after the troubled housing finance firm delayed interest payments.
The net asset values (NAVs) of several debt schemes fell by 6-53 per cent on Tuesday, reflecting the marked-down value of their holdings in DHFL paper.
Meanwhile, media reports suggested that the company is to meet SBI-led consortium today for a solution and might opt for selling part of the portfolio to the banks for Rs 1,500 crore shortfall.
Shares of DHFL traded 10.53 per cent down at Rs 99.85 on BSE around 9:30 am.