Rakesh Jhunjhunwala has lost Rs 178 crore with DHFL share in 2019
DHFL share price was stuck in lower circuit of 5% today at Rs 18.45 compared to the previous close of Rs 19.40 valuing his current holding at Rs 14.24 crore. Rakesh Jhunjhunwala held 77.20 lakh or 2.46% in the firm at Rs 249.4 per share on December 31, 2018.
- Oct 24, 2019,
- Updated Oct 24, 2019 7:51 PM IST
A crash in Dewan Housing Finance Limited (DHFL) share price has left ace investor Rakesh Jhunjhunwala poorer by Rs 178.29 crore since the beginning of this year. DHFL share price fell 92.6% or 230.95 points during the period. Rakesh Jhunjhunwala held 77.20 lakh or 2.46% in the firm at Rs 249.4 per share on December 31, 2018. Total value of his stake at the end of December quarter stood at Rs 192.53 crore.
DHFL share price was stuck in lower circuit of 5% today at Rs 18.45 compared to the previous close of Rs 19.40 valuing his current holding at Rs 14.24 crore. DHFL's current share price is also a fresh 52-week low for the housing finance share. The microcap share has lost 14% in last three sessions. There were only sellers and no buyers in the stock. DHFL share price is trading lower than its 5-day, 20-day, 50-day, 100-day and 200-day moving averages. It has lost 90% of its value in last one year.
DHFL share price has been hit by a flow of negative news since September-end last year. Of late, findings of a forensic audit of the firm have roiled the stock.
A forensic audit of the company by KPMG found that DHFL had lent Rs 14,000 crore to about 25 group companies, which had posted an average profit of about Rs 1 lakh, Mint reported. That raised suspicion that the mortgage lender may have diverted funds.
The draft report of the audit was shared with the members of DHFL's committee of creditors (CoC) last week and will be presented to the board of the mortgage lender once it is finalised.
Rakesh Jhunjhunwala, wife Rekha earned Rs 483.75 crore with this stock in just four trading sessions
However, Dewan Housing Finance has seen a series of downgrades by credit ratings agencies sending its share price into tailspin. On June 6 this year, Icra and Crisil downgraded rating on Rs 850 crore worth of commercial paper of DHFL to 'default' from 'A4' due to the mortgage lender's deteriorating liquidity condition.
Crisil, in a note, said the downgrade to 'default' or 'D' reflects delays in debt servicing by DHFL on some of its non-convertible debentures (NCDs) because of inadequate liquidity. The payments were due on June 4, 2019. The NCDs are not rated by Crisil.
In a separate note, Icra said, "The rating revision factors in further deterioration in company's liquidity profile and delays in meeting scheduled debt obligation on June 04, 2019."
Icra added that 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 commercial paper programme in a timely manner. The company has commercial paper (CP) worth Rs 750 crore maturing in June 2019 with the first repayment on June 7.
"With liquidity inadequate as on date to service debt and visibility very low on timely fund raising, we expect the CP to be in default on maturity," Crisil said.
A crash in Dewan Housing Finance Limited (DHFL) share price has left ace investor Rakesh Jhunjhunwala poorer by Rs 178.29 crore since the beginning of this year. DHFL share price fell 92.6% or 230.95 points during the period. Rakesh Jhunjhunwala held 77.20 lakh or 2.46% in the firm at Rs 249.4 per share on December 31, 2018. Total value of his stake at the end of December quarter stood at Rs 192.53 crore.
DHFL share price was stuck in lower circuit of 5% today at Rs 18.45 compared to the previous close of Rs 19.40 valuing his current holding at Rs 14.24 crore. DHFL's current share price is also a fresh 52-week low for the housing finance share. The microcap share has lost 14% in last three sessions. There were only sellers and no buyers in the stock. DHFL share price is trading lower than its 5-day, 20-day, 50-day, 100-day and 200-day moving averages. It has lost 90% of its value in last one year.
DHFL share price has been hit by a flow of negative news since September-end last year. Of late, findings of a forensic audit of the firm have roiled the stock.
A forensic audit of the company by KPMG found that DHFL had lent Rs 14,000 crore to about 25 group companies, which had posted an average profit of about Rs 1 lakh, Mint reported. That raised suspicion that the mortgage lender may have diverted funds.
The draft report of the audit was shared with the members of DHFL's committee of creditors (CoC) last week and will be presented to the board of the mortgage lender once it is finalised.
Rakesh Jhunjhunwala, wife Rekha earned Rs 483.75 crore with this stock in just four trading sessions
However, Dewan Housing Finance has seen a series of downgrades by credit ratings agencies sending its share price into tailspin. On June 6 this year, Icra and Crisil downgraded rating on Rs 850 crore worth of commercial paper of DHFL to 'default' from 'A4' due to the mortgage lender's deteriorating liquidity condition.
Crisil, in a note, said the downgrade to 'default' or 'D' reflects delays in debt servicing by DHFL on some of its non-convertible debentures (NCDs) because of inadequate liquidity. The payments were due on June 4, 2019. The NCDs are not rated by Crisil.
In a separate note, Icra said, "The rating revision factors in further deterioration in company's liquidity profile and delays in meeting scheduled debt obligation on June 04, 2019."
Icra added that 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 commercial paper programme in a timely manner. The company has commercial paper (CP) worth Rs 750 crore maturing in June 2019 with the first repayment on June 7.
"With liquidity inadequate as on date to service debt and visibility very low on timely fund raising, we expect the CP to be in default on maturity," Crisil said.