Shares of Dewan Housing Finance Corporation Ltd. fell to their lowest possible, after Edelweiss Asset Management Ltd. on Thursday approached the Bombay High Court to recover its dues from the debt-ridden firm.
Extending their losing streak to four trading sessions, DHFL shares fell as much as 9.98 percent, the lower circuit of the stock, to Rs 23.50 apiece.
This, after Edelweiss Financial Services Ltd. said its unit Edelweiss Asset Management Ltd. has approached the Bombay High Court for recovery of principal and interest dues from DHFL.
"Our subsidiary, Edelweiss Asset Management Limited (which has various schemes of mutual funds) has approached the Mumbai High Court for recovery of principal and interest dues from DHFL, in line with action taken by other peers in the industry," Edelweiss Financial Services said in an exchange filing.
On Oct. 7, Central Depository Services (India) Ltd. froze DHFL's promoter shareholding because of delay in announcement of the company's earnings for April-June quarter of the current financial year. In response, DHFL told the stock exchange that its board meeting has been scheduled for Oct. 17 to consider and approve the Q1 results.
In late September, DHFL submitted a draft debt resolution plan, subject to approval of investors and bankers. Acceptance of the plan is crucial for new funds to start flowing into the company.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
