DHFL stages smart rebound, ends 16% higher

NEW DELHI: Shares of Dewan Housing Finance Corporation (DHFL) staged smart rebound and closed the day 15.69 per cent up at Rs 127.90 on Thursday, a day after the company said its Chief Executive Harshil Mehta resigned.

Shares of the company fell 6 per cent in morning deals but rebounded after the management of the company underplayed the resignation of the CEO by reallocating him to a retail focused portfolio.

"DHFL management commentary underplayed the resignation of the CEO by reallocating him to a retail focused portfolio, but the bounce was imminent as the stock was deeply butchered," said Umesh Mehta, Head of Research at Samco Securities.


As per media reports, Mehta said he left to provide confidence to investors about retail portfolio of the company.

The board has recommended the appointment of Sunjoy Joshi as an Independent Director and Srinath Sridharan as a Non-Executive Director.

DHFL shares took a blow recently after the investigative media outlet Cobrapost accused the company of giving Rs 31,000 crore of loans to ‘dubious’ entities linked to promoters who, the news portal alleged, were the ultimate beneficiaries of the funds.