With a company whose reputation has been tarnished and stock price movement has confirmed the same, believing the company announcements and management utterances is risky. One has to take everything and anything associated with the company including the newsflow with a huge dose of salt.
Typically these kind of counters are newsflow heavy and prices have wild swings and there is immense risk for the typical value hunter to get trapped. While there may be the counter trend rallies which can provide 30-40 or 50% returns the ride is often like riding a tiger.
Well said.One has to think why the price has fallen from 690 to less than 90 without a solid reason.I feel the management intereview is fully cooked ,even they assuring retail shareholders! . As we have a absence of law (including impotent SEBI) the corporate criminals will go scotfree. As per Warren BuffetâOver the years, Charlie and I have observed many accounting-based frauds of staggering size. Few of the perpetrators have been punished; many have not even been censured. It has been far safer to steal large sums with a pen than small sums with a gun.â -1988 letterâ . At the end I feel there will be nothing left on the table for the retailers.
DHFL is not in good position, read an article in ET where it stated 8000 cr payment for DHFL and 2000 cr for reliance capital till June 2019, luckily relcap got money by selling RNAM stake, DHFL will go bust as selling of half or full stake doesnât matter now. If DHFL get a swipe of 10000 cr CP/NCD whole problem will be resolved. Concept of NBFC ending in India, will fo to sub 4% growth for long time. Keep your capital safe.
Also, CCI has trashed PIL by these two guys named Vikas Shekhar and some Yadav against IBHFL for LVB merger. These are the same guys who went after DHFL last year when COBRAPOST happened. Does this mean that we can expect something positive with DHFL as well? maybe banks will start funding now?
This is a very interesting development. If DHFL can continuously pay its obligations (even if itâs with some delay), we need to question the thesis that money supply is scarce and only going to the big NBFCs. Someone is giving the money to DHFL.
I donât know if they are getting new outside money, (except from the people who buy parts of their loan book of course). Not sure if even PSU banks are adventurous enough right now.
They could just be repaying from the funds received as repayments from customers, apart from selling their loan book.
No one is giving money.They are selling their last few saleable assets. It is like a man who doesnât have money to buy a meal, selling his kidney and you see him with a wad of cash and think he is rich.
Thatâs a default, whether or not technical. I like the way they put it, that they paid 40% of the amount, and they will pay up soon, and that they did not make any difference between secured and unsecured (Commercial Paper is unsecured), which again will rile the secured creditors.
Their communication attached is interesting, as if they did a favor paying up even after rated Default!
Passion Mission and Reputation of Name The Wadwan is working hard to keep these thing up but i donât know what will be happen in coming days . I found this in one of the rating agency report which seems positive
" While reliance on short-term borrowings through commercial papers has declined with the amount outstanding reducing to Rs. 850 crore as on May 10, 2019 from Rs. 8,715 crore as on September 30, 2018,"
ref : https://www.icra.in/Rationale/ShowRationaleReport/?Id=81083
Disc : this is not a suggestion to buy or sell .I am invested so my views may be biased
They are getting money by securitizing and assigning their retail loans to banks. These are good assets with the least risk of default and provide good returns to the banks in exchange for providing liquidity to DHFL.
The problem is that this constant disposal of retail loans in increasing the share of wholesale loans in remaining assets, which is making the business riskier. Also, since retail housing loans provide low net interest margins, chances are DHFL is selling them below their book value to make them more attractive for banks.
Lenders in discussion to acquire 40% @ Rs. 70
They will be exempt from open offer while existing promoters will lose control and board reconstitution rights.
If it happens there is hope of revival.
Saw on news channel BTVI.
They were showing for long time. Even now.
Total 85000 Cr is debt of DHFL and discussions are on converting a part of that debt to equity.
When Aadhar housing a subsidiary of DHFL was sold for 2200cr, I donât think the core DHFL business would be sold at 70/share.
As per Friday closing market cap of DHFL is 2260cr & 40% of it will be around 900cr if sold at 70/share.
Aadhar housing with 8k cr AUM was sold at 2200cr
DHFL with 80kcr loan on BS (securitization adjusted) wonât be sold off at such meagre market cap of 2260
The news is a wild speculation IMO
The asset quality of loan book of dhfl is very good thatâs the reasons most of the lender bank want to help to recover the company from the bottom . Let see how the things go from here . .This one good imitative taken by the banks( i hope with well researched manner 0 in the banking history of india .Thi s can be steeping stone in Banking or Nail in the PSU Banks âŚ
Last time company had taken external commercial borrowing was in January 2019 a snip from RBI website
