Shares of Dewan Housing Finance Ltd (DHFL) nosedived as much as 10% in intraday trade on Friday after the company deferred the release of its fourth-quarter results which were scheduled to be announced on 29 June.
Cash-strapped DHFL will now announce its financial results for the quarter and year ended March on 13 July. "The date of the board meeting. to consider and approve the audited financial results of the company for the fourth quarter/financial year ended March 31, 2019, and matters relating to the ensuing annual general meeting, as intimated earlier that June 29, 2019, is being postponed to July 13, 2019," DHFL said in a regulatory filing.
DHFL said the postponement is due to “certain unforeseen operational engagements including non-availability of a few directors”.
Of late, DHFL has been facing liquidity crisis and has also defaulted on its repayment obligations. On Tuesday, DHFL said that it had defaulted on principal repayment on commercial papers (CPs) worth Rs 225 crore, while the payment on rest of Rs 150 crore was done. It added that the balance of Rs 225 crore will be paid once the surplus cash flow position improves over the next couple of days.
Earlier this week, the company also announced that it will shortly divest its full stakes in subsidiary firms DHFL Pramerica Asset Managers and DHFL Pramerica Trustees in order to raise funds to clear debt obligations.
The DHFL crisis came to the forefront when, on 4 June, DHFL delayed interest and principal payments to the tune of Rs 1,160 crore to bond holders. The company asked for a seven-day grace period. Consequently, CRISIL, ICRA and CARE Ratings downgraded their rating on DHFL’s Commercial Paper/Non-Convertible Debentures to “D”, based on delay in debt servicing due to inadequate liquidity, modest capital position and modest earnings. DHFL later, however, managed to make partial payments to NCD investors.
At 2:07pm, shares of DHFL were trading at Rs 73.30, down 10.12%, on NSE.
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