DHFL stock tanks 10%, hits lower circuit; experts warn sell now, stay away, relisting prospects unclear

Cyclical, digital stocks set for mass rating upgrades; these shares to benefit from AMFI rejig

Upcoming reclassification of shares by the Association of Mutual Funds in India (AMFI), may see cyclicals and digital stocks take centre stage.

Investors buying shares of Dewan Housing Finance Ltd (DHFL) could be latching onto a pipe dream which may never fructify.

Investors buying shares of Dewan Housing Finance Corporation Ltd (DHFL) could be latching onto a pipe dream which may never fructify. The soon-to-be delisted company was in high demand on the stock exchanges on Tuesday, with 44 lakh shares exchanging hand on the BSE and a whopping 1.46 crore on the NSE. Today the stock hit the lower circuit to trade at Rs 20.60 apiece. However, The sharp drop in the shares of the soon-to-be delisted company comes after the stock soared 31% in the first 8 days of this month. 

The heavy trading and delivery volumes in DHFL stock yesterday showed that investors were still buying the stock, some of them hoping to extract some value when the stock re-lists. However, this may be far from the truth with no future promises of re-listing made to shareholders. The value of DHFL shares with existing shareholders has essentially turned to trash, Vishal Wagh, Head of Research, Bonanza Portfolio, told Financial Express Online. “The wise move for investors is to sell their current holdings and invest in more lucrative options,” he added. Vishal Wagh further added that the relisting of DHFL shares remains a distant dream which may or may not be achieved.

Related News

  • Sensex, Nifty erase intra-day gains to end in red; is market trend turning negative now?
  • ITC’s margins to improve, changing consumer behaviour to drive demand; stock may surge 20%
  • Cyclical, digital stocks set for mass rating upgrades; these shares to benefit from AMFI rejig

“There is uncertainty about the future prospects of DHFL. Investors should take money out before delisting and look for opportunities where there is a certainty,” Vishal Wagh added.  India’s largest stockbroker, Zerodha has introduced a nudge feature on its platform that informs investors of the possibility of invested value being extinguished as part of the acquisition of the company.

On Monday, DHFL said in an exchange filing that Mumbai bench of the National Company Law Tribunal (NCLT) approved Piramal Capital & Housing Finance’s insolvency resolution plan with certain conditions. “As part of the Resolution Plan, the equity shares of the company are proposed to be delisted,” the company said in the BSE filing. Piramal Capital & Housing Finance will shell out Rs 37,250-crore for DHFL. This will translate to 40% recovery for financial creditors on the total claim of Rs 87,082 crore. State Bank of India is a lead creditor to DHFL with admitted claims of Rs 7,170 crore. DHFL had gone bankrupt with more than Rs 90,000 crore in debt to various lenders, including banks, mutual funds and individual investors who kept fixed deposits with the company.

Gold Price Today, 9 June 2021: Yellow metal firms on positive global cues; check support, resistances

Gold Rate Today, Gold Price in India on 9 June 2021: Gold prices edged marginally higher in India on Wednesday, following global rates as a fall in US bond yields supported yellow metal prices.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

stock market

  1. Home
  3. DHFL stock tanks 10% hits lower circuit experts warn sell now stay away relisting prospects&nbspunclear

Blackstone-backed Sona BLW Rs 5,550-crore IPO opens June 14; firm announces price band

Sona BLW Precision Forgings’ (Sona Comstar) Rs 5,550-crore initial public offering (IPO) will open for subscription on June 14, 2021, at a price band of Rs 285-291 per share.