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Dewan Housing Finance stock falls 60%, other housing finance firms follow suit

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Dewan Housing Finance stock falls 60%, other housing finance firms follow suit

The stock of Dewan Housing Finance fell 59.67% or 364 points to a new low of 246.25, the most among the NBFCs.

The stocks of housing finance companies crashed in afternoon trade today with Dewan Housing Finance Corporation falling the most on the indices.

The stock of Dewan Housing Finance fell 59.67% or 364 points to a new low of 246.25, the most among the NBFCs. Other NBFC stocks such as Indiabulls Housing Finance cracked 14.84 percent, Reliance Home Finance fell 18.30%, Gruh Finance (17.66%), Repco Home Finance dropped 12.08 percent, PNB Housing Finance 9.23%, LIC Housing Finance 14.84% and Bajaj Housing Finance (19.96%).

In fact, the Dewan Housing Finance stock lost nearly Rs 10,000 crore in market capitalisation.

DHFL CMD Kapil Wadhawan said the firm has no loan against shares. It has no exposure to IL&FS Group. The stock fall has come as a surprise and shock. The firm has Rs 10,000 crore worth of liquidity available in the system and its total liability stands at Rs 4,800 crore

The NBFC crash spooked the Sensex and Nifty too which fell nearly 1,128 points and 368 points , respectively.

There were systemic issues in housing finance companies, experts said.

However, the indices later recovered on management of these companies allaying concerns over their financial position.

While the Sensex was trading 468 points lower at 36,652, the Nifty fell 148 points to 11,085 level recovering some losses in afternoon trade.