DHFL cuts losses, down 4% post co's clarification

NEW DLEHI: DHFL shares were trading 4 per cent lower on Wednesday as the company issued clarification on Cobrapost allegations, and in an investor call, suggested it is in advanced stage to sell non-core assets.At 9.47 am, the scrip was trading 4 per cent lower at Rs 163.20 on BSE. The scrip had fallen 9.73 per cent to hit a low of Rs 153.50 in early trade."Company has denied all the allegations and has filed complaint against the accuser who is neither a shareholder nor borrower. Though they have accepted that funds have been transferred to certain companies mentioned but nature of them being shell companies is not correct," said Sameer Kalra - Equity Research Analyst & Founder Target Investing.Kapil Wadhawan, Chairman & Managing Director at DHFL, on Wednesday said the housing finance company is in advanced stages of selling its non-core assets. He said that it is looking to generate Rs 4,000-5,000 crore liquidity over next 4-5 months.As a holding company, Wadhawan Global Capital (WGC) has made some investments, which were aligned to DHFL business. Adhaar Housing Finance is in final stages of sale and it should happen over the next couple of days, the management said on Wednesday. Avanse Financial Services is the other company where DHFL has stake. Any sell down of these assets will generate capital for DHFL going forward, the DHFL management said. Life insurance, asset management and general insurance are some of the non-core financial business that the holding company WCG held.“The intent is to sell down assets and completely take care of the liability, even at the WGC level,” Kapil Wadhawan, Chairman & Managing Director at DHFL said. Cobrapost had on Tuesday accused Dewan Housing Finance of giving Rs 31,000 crore of loans to ‘dubious’ entities linked to the promoters that, the news portal alleged, were the ultimate beneficiaries of the funds. Chairman Kapil Wadhawan countered the charges, claiming all the transactions were legitimate. The company on BSE clarified that the company is fully tax compliant and its books are audited by global auditors."DHFL and its group companies are confident of meeting any scrutiny on any aspect of our operations and will pursue these frivolous allegations to its logical conclusion," the company had said on Tuesday. 67749296 67749239

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