DHFL share hits over 10-year low after CDSL freezes promoters' shareholding

Shares of debt-laden Dewan Housing Finance Corporation Ltd (DHFL) plunged over 10-year low and were locked in the lower circuit limit of 10 per cent on the Bombay Stock Exchange on Wednesday after leading depository CDSL froze promoters' shareholding. The stock was trading near its lowest level since February 2009.

Central Depository Services Limited (CDSL) has frozen shareholding of the promoters of mortgage lender DHFL due to delay in announcement of the company's financial earnings, according to a PTI report.

Weighed down by the development, DHFL share price declined as much as 9.86 per cent to touch record low of Rs 26.05 apiece on the BSE, after opening tad lower at Rs 28.55 against previous close level of Rs 28.90.

On the National Stock Exchange (NSE), stocks of DHFL were trading 9.84 per cent lower at Rs 26.10 after opening lower at Rs 28.

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According to media report, the leading depository has taken this decision after the crisis-hit company failed to announce its first quarterly results.

Meanwhile, the company in an exchange filing said that its board would meet on October 17, 2019, to consider and approve the un-audited financial results of the company for the first quarter and three months ended June 30, 2019, along with limited review report thereon by the statutory auditors of the company.

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The delay in submission of the financial results by the company is on account of resignation of the erstwhile statutory auditors and reasonable time required by the new statutory auditors to review the financial results, DHFL said in the regulatory filing.

The shareholders of the company at AGM held on September 28 had approved the appointment of K K Mankeshwar & Co., Chartered Accountants as the statutory auditors of the company consequent upon resignation of the erstwhile statutory auditors.

Edited by Chitranjan Kumar