Shares of Dewan Housing Finance company in intra-day trade on Monday have been locked in upper circuit of 4.92% at Rs. 19.20 per share. This comes after the Centre on Friday ordered a SFIO probe against the company's promoters for alleged financial irregularities and amid it bankers may likely reject the resolution plan offered earlier by the stressed housing finance company.
In another development, as per reports the state-run UP Power Corporation Ltd (UPPCL) has invested its employees' funds totaling to more than Rs. 2600 crorein DHFL. The alleged dealing has landed the company in yet another soup.
On Friday, the stock gained during the session after lenders to the housing major decided to file an application against the order of Bombay high court which restrains the company from making payments to all creditors. As per a leading business dailies report, after the High Court order on restraining payments by the company, banks fear that such an incidence i.e. stoppage of payments to banks in securitization deal done by DHFL, borrowers face the risk of being labeled as defaulters.
On October 11, the stock of DHFL tanked to an 11-year low of Rs. 21.15 on the BSE.