Shares of insolvent Dewan Housing Finance Corp Ltd (DHFL) gained 5 per cent after the committee of creditors (CoC) approved a plan that would enable resuming the shadow bank’s lending business.
Shares of DHFL traded at Rs 16.85 apiece on the BSE. This, however, was contrary to the broader market sentiment. The benchmark BSE Sensex tanked 640 points or 1.6 per cent, the biggest single-day fall since September 2019, tracking a spike in global crude oil prices, and the subsequent concerns over India’s import bill and current account deficit. Global crude oil prices continued their rally for the second straight session, as fresh concerns over supply disruptions of crude oil emerged after US airstrikes killed top Iran Iranian commander General Qassem Soleimani early on Friday.
The committee of creditors of DHFL approved a plan under which the mortgage lender will resume advancing home loans beginning with Rs 500 crore a month to arrest the decline in its loan book. The company has not disbursed loans in more than six months due to liquidity crunch that also led to a series of defaults in repayment of debt.
Read EquityPandit’s Nifty Outlook for the Week