DHFL shares slump 5% on ICRA downgrade

NEW DELHI: Shares of DHFL slipped over 5 per cent on Tuesday morning after rating agency ICRA downgraded the company’s commercial papers by two notches citing its contracting ability to raise money and generate new business.

The scrip closed at Rs 130.85 down 4.28 per cent while the benchmark BSE Sensex closed 0.66 per cent lower at 35,973.71.

“The rating revision takes into account the moderation in the company’s financial flexibility owing to challenges faced in raising funds from traditional bank lines and debt market instruments and the consequent impact on the company’s ability to generate fresh business," the rating company said in a release.


"DHFL CPs have an outstanding of Rs 1,525 crore, mostly held by mutual funds. The company has been buying back those before the scheduled maturity dates in a bid to regain investor confidence. It has also indicated that it shall buy back substantial portion of this amount over the next one month," ET reported.

Meanwhile, the shares of DHFL opened at Rs 131 on BSE against its previous closing of Rs 136.70.