DHFL issue may cast a shadow on the sector
The alleged financial fraud by a large housing company could have implications for the broader sector, including increase in risk aversion by debt investors or lenders, said UBS.
Cobrapost on Tuesday accused Dewan Housing Finance Corporation of giving Rs 31,00crore of loans to ‘dubious’ entities linked to promoters, that the news portal alleged, were the ultimate beneficiaries of the funds.
Dewan Housing later issued a clarification on Cobrapost allegations, and in an investor call, suggested that it is in advanced stage to sell non-core assets.
Shares of Dewan Housing ended down 5 per cent at Rs 161.60 on Wednesday, after falling 8 per cent the previous day. UBS does not have a coverage on Dewan Housing.