DHFL share jumps 5% on reports of deal with Oaktree Capital

Shares of Dewan Housing Finance Corporation (DHFL) were locked in upper circuit of 5 per cent on the Bombay Stock Exchange on Monday amid reporst that the debt-laden company has entered into an agreement with Oaktree Capital to sell its entire Rs 35,000-crore wholesale book.

DHFL, India's fourth-largest housing finance company, has signed a non-binding term sheet with Oaktree Capital for Rs 35,000 crore of its wholesale book, The Economic Times reported quoting a source close to the development as saying.

Meanwhile, the mortgage lender reiterated that the company was in discussions with various parties to appoint development managers for some of its large projects.

"The company is in discussions with various parties to appoint development managers for some of its large projects and the Company has also made significant progress in bringing in investors' interest in certain projects for extending fresh working capital to get the projects moving towards completion stage," DHFL said in a filing to the Bombay Stock Exchange.

Also Read: DHFL stock at 10-year low after Edelweiss moves Bombay HC to recover Rs 70 cr dues

"As and when finality for implementation is achieved on these proposals, the same will be disclosed in compliance with applicable laws," it added.

DHFL stock opened tad higher and surged 5 per cent to hit intraday high of Rs 22.20 on BSE. The stock has eroded over 90 per cent of its value in the last one year.

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

Last week, Central Depository Services Limited (CDSL) had frozen shareholding of the promoters of mortgage lender DHFL after the crisis-hit company failed to announce its first quarterly results.

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.

Edited by Chitranjan Kumar