DHFL climbs 10% as it repays DSP MF debt

DHFL

Shares of Dewan Housing Finance Corporation rallied 10 percent intraday on September 9 after full repayment of debt to DSP Mutual Fund.

The stock has rallied 30 percent in the last 15 days. It was quoting at Rs 50.45, up Rs 3.90, or 8.38 percent, on the BSE at 1158 hours.

DSP MF said the housing finance company had paid the entire pending amount, CNBC-TV18 reported. The mutual fund house had an exposure of Rs 150 crore to commercial papers of DHFL.

DHFL had paid Rs 75 crore in June and the remaining amount was paid on September 7.

In addition, lenders are considering Rs 7,000 crore in emergency funding to debt-laden financier DHFL even as the creditors decide on the formula for conversion of debt into equity, which is a key part of the proposed restructuring plan, a report in The Economic Times said.
“Separately, mutual funds are unlikely to sign the inter-creditor agreement (ICA) for DHFL, citing a regulatory rider known as sidepocketing or segregation of stressed assets. Only Tata Mutual Fund, which has already complied with relevant regulations, has agreed to be part of the ICA,” the report said.

News Source: Moneycontrol

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